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Founded in 2002, the company originally distributed programs that were considered spyware, from which they made millions of dollars in revenue.It stopped distributing those programs after complaints from groups in the United States and Canada, and announced it was talking with several United Kingdom Internet service providers (ISPs) to deliver targeted advertising based on the websites that users visited.

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In 2008 Phorm considered offering an incentive, in addition to the phishing protection it originally planned, as a means to convince end-users to opt into its Webwise system.

The alternate incentives, suggested in a market research survey carried out on behalf of Phorm, included further phishing protection, a donation to charity, a free technical support line, or one pound off opted-in users' monthly broadband subscriptions.

Phorm Senior Vice President of Technology Marc Burgess has said that the collected information also includes a timestamp.

Burgess said, "This is enough information to accurately target an ad in [the] future, but cannot be used to find out a) who you are, or b) where you have browsed".

resides in Mortimer Street, London, UK with staffing levels of around 35.

Trading in Phorm's shares was suspended on London's AIM market on 24 February 2016, pending "clarification of the company's financial position".

Where possible, Phorm's system strips its tracking cookies from http requests before they are forwarded across the Internet to a website's server, but it cannot prevent the UID from being sent to websites using https.

This would allow websites to associate the UID to any details the website collects about the visitor.

Website publishers are invited to upload a web widget which will provide a small frame to display recommended web links, based on the tracked interests of any Phorm-tracked website visitors (those whose ISP uses Phorm Deep Packet Inspection to intercept and profile web traffic).

There would be no charge to the website, and Phorm do not stand to make any money from Webwise Discover; however, there are plans to display targeted adverts in the future.

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