September 26, 2007 Alfred Branch Jr.
Claiming that Paciolan’s Ticket Marketplace system infringes on its electronic ticketing operation, Flash Seats Monday filed a federal lawsuit against Paciolan, which Ticketmaster agreed to buy this summer.
In July, Flash Seats and its partner the Cleveland Cavaliers sued Ticketmaster on anti-trust grounds for allegedly trying to stamp out competition in the ticketing industry. Ticketmaster’s acquisition of Paciolan is under mandatory government review so it does not yet own Paciolan.
Over the past couple of years, the business landscape of event ticketing has grown increasingly competitive, which in part explains the flurry of lawsuits as companies seek ways of protecting whatever edge they may have.
Flash Seats offers teams and their fans an electronic ticketing alternative under which season ticketholders can exchange, sell or give away their tickets electronically, and the company believes its technology is the wave of the future. Paciolan, which boasts hundreds of clients, offers complete automated ticketing solutions to venues and teams.
According to published reports, Flash Seats is seeking an undisclosed amount in damages and for the court to stop Paciolan’s practice. Flash Seats CEO Sam Gerace told Businessweek that the lawsuit was filed “to protect our customers against imitators who have not done the hard work of innovation.” Shaw Taylor, spokesperson for Paciolan, did not return a message seeking comment.