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Battle over Use of Contributor Data Continues Between Aristotle and NGP

BY Nick Judd | Wednesday, July 21 2010

In a complaint sent to the Federal Elections Commission dated July 19, NGP Software resurrected its objections over how Aristotle software makes use of FEC data about political contributors.

The complaint pertains to Aristotle's "Aristotle 360" software, the company's latest-generation relationship management and fundraising package. A feature of Aristotle 360 allows users to see a visualization of all their organization's relationships, augmented with the data Aristotle keeps in-house, for use in, among other things, donor prospecting; in the complaint, NGP says that feature makes use of FEC contributor data, does so for the purpose of soliciting contributions, and thusly violates the rules governing how FEC data can be used. (Aristotle's software is profiled in our "Who to Hire" guide, and by the way, so is NGP's.)

In a statement emailed Tuesday, Aristotle CEO John Phillips wrote that Aristotle's software was compliant with the law and that NGP was "wasting taxpayer dollars."

"We create powerful fundraising and compliance software that is 100% unconditionally guaranteed to comply with all state and federal laws and regulations," he wrote, saying Aristotle built the software in consultation with election lawyers and former FEC staff. "It’s protected by a patent pending. And it gives Aristotle’s clients a very, very big advantage over NGP clients. There is nothing NGP can do about it. And it’s making them crazy."

An FEC spokesman confirmed receipt of the complaint, but said he could offer no further information because FEC regulations make the whole issue secret — including whether or not the FEC's Office of General Counsel decides the complaint has any weight — until after the matter is settled.

As we reported in March, the FEC decided earlier this year to take no further action on a complaint NGP had filed years ago that alleged Aristotle was misusing data on contributors to political campaigns in its older software. The main variation on NGP's argument this time is that the FEC data is a more central part of Aristotle's product and that it is used specifically for purposes of fundraising, not compliance.

This is part of an ongoing web of disputes between Aristotle and NGP, which are vying for market share in the market for software to do political fundraising and financial compliance. It all started in 2004, when NGP sought the opinion of the FEC pertaining to Aristotle's use of data about political contributors. NGP believes that the FEC's answer established Aristotle was not using the data in a legal way; Aristotle says NGP misunderstood how Aristotle was using the data and that it has the green light to continue using its method. What's more, Aristotle is seeking to patent the way it makes use of FEC data.

Separate from these FEC matters, which are largely outside public view until they are settled, the two are neck-deep in legal action against one another in U.S. District Court concerning false or misleading advertising claims, and set for a bench trial in November.

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