A California federal court has lifted a restraining order against Juno Online Services that had stopped the ISP from displaying advertisements on its free internet service. The decision deals a blow to Juno’s rival NetZero which alleges infringement of its patent for advertising technology.

In his order, Judge Stephen V. Wilson rejected NetZero's request for a preliminary injunction that would have broadened the existing temporary restraining order and extended its duration until the outcome of a forthcoming trial on the question of infringement. Instead, in a victory for Juno, the court lifted the temporary restraining order entirely.

The temporary order, which had been in place from early January until Friday, had prevented Juno from displaying third-party advertising on its “floating ad banner”. The patent, which was issued in December, applies to a process that enables an ISP to display advertisements or messages through a window that is separate from the browser.

The California court determined that NetZero's patent claims are vulnerable to attack on grounds of invalidity and non-infringement when a full trial is conducted later this year. Richard Buchband, senior vice president and general counsel of Juno said: “We're encouraged by today's ruling and believe that it is a good barometer of Juno's chances for prevailing at trial.”

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