Bloomberg: Borders files lawsuit, accusing consumer database company of misusing loyalty program

By Nathan Bomey Business news director

Posted on Thu, Sep 1, 2011 : 12:15 p.m.

Ann Arbor-based Borders Group Inc., which is in the process of liquidating, sued Next Jump Inc., accusing the consumer database company of "trade-secret misappropriation and trademark infringement over the use of a website," Bloomberg reported.

Next Jump, which was running the Borders Rewards loyalty program, used customer data to create a website called OO.com, according to the lawsuit cited in Bloomberg's report.

Borders reportedly believes that Next Jump's actions threaten to undercut the value of the intellectual property Borders is hoping to sell in an auction later this month. Borders is auctioning off its IP, including its brand name, website and loyalty program database.

Borders is closing the 399 stores that were still operating when the company converted its Chapter 11 bankruptcy reorganization into a full-scale liquidation in July. All of the stores are expected to be closed by the end of the month.

Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.

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