A technology Web site, PhoneDog.com, and one of its former chief editors, Noah Kravitz, are embroiled in a legal battle that could have fascinating repercussions for social networks. Kravitz is suing PhoneDog over contractual issues, but it’s the counter-suit that really has my attention. PhoneDog is suing Kravitz over the use of his Twitter handle. They claim that he improperly kept the Twitter name after he left the company, and that he owes them damages of $2.50 for each Twitter follower he took with him, for each month he held them after he left. At 17,000 followers when he left, and 8 months since then, that starts damages at $370,000. So, that’s not even the full value PhoneDog puts on the Twitter account, but rather the value that Kravitz took with him when he left. PhoneDog essentially believes a key Twitter account is worth half a million dollars per year.

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