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The legal storm between two free Internet Service Providers over the use of patented ad banner technology has taken another twist with a California federal lifted a temporary restraining order against New York-based Juno Online Services.

The dispute between Juno and Westlake Village, Calif.-based rival NetZero, Inc. reached a head last December when a temporary restraining order was issued against Juno, blocking the nation's third largest ISP from displaying third-party ads on its floating ad banner.

However, in what was described as a "favorable ruling" for Juno, the company said the court rejected NetZero's request for an extension of the injunction. "Instead, in a victory for Juno, the court lifted the temporary restraining order entirely."

"Now, with the restrictions removed, Juno is permitted to resume selling advertising on the Juno Guide...We're encouraged by today's ruling and believe that it is a good barometer of Juno's chances for prevailing at trial,'' a statement from Juno said.

NetZero declined comment on the latest twist in the case.

NetZero, which offers free and paid ISP services throughout the USA, has argued that Juno and other unnamed competitors, are causing irreparable financial harm with continued use of its ZeroPort technology, patented late last year.

Insisting it had exclusive rights to the patent (U.S. Patent No. 6,157,946), NetZero claims Juno's floating banner technology is in violation of the patent. The technology allows ISPs to display ads or messages through a window that is separate from the browser.

Juno counter-sued, alleging that it was in fact NetZero that was infringing on its patented ad-banner technology.