Update on Maine Blogger suit: withdrawn.

"UNCONDITIONAL SURRENDER BY NY AD AGENCY IN MAINE BLOGGER CASE" boasts the Media Bloggers Association press release.

The decision to withdraw the lawsuit comes on the heels of a withering media campaign orchestrated by the Media Bloggers Association on behalf of MBA Member Lance Dutson. Hundreds of bloggers responded to the MBA's call to arms and were joined by media outlets around the world in highlighting the heavy-handed tactics of the state contractor.
"As it should be, the story of 'Warren Kremer Paino and the Maine Blogger' is now a cautionary tale", said MBA President Robert Cox, "future potential plaintiffs would do well to consider WKP's experience in attempting to silence a blog critic through the Federal courts. Our message is simple: 'Don't Mess with the Bloggers'"

My god they're like Mafia... ;)
Mainewebreports update is here.
Link pointed out by MaryWills in comments.

Ads That suck have an interesting conversation going on in their comments before one knew that the suit was wthdrawn. A commenter there called Joe says: "Yes, blogs give people the power to criticize and that’s super. I fully support and take advantage of that opportunity. But there’s an attitude among many in the blogging world that bloggers are somehow above the law. The fact is, once you publish something in (semi-) permanent form on a medium with the potential for wide distribution, you open youself up to certain legal risks and responsibilities."
I think that is a good point. I never did see the basis for a libel suit in the Maine blogger case but maybe, perhaps they had a case when it came to copyright infringement as mainewebreport posted the full advert that he criticized. But then again, he was critiquing it wasn't he? Doesn't that fall under the right set forth in Section 107 of the United States Copyright Act, to use copyrighted materials for certain purposes, such as criticism, comment, news reporting, teaching, scholarship, and research? Well, I'm not a lawyer - and certainly not a US one so that's all theory.

To end on a high note, spittle and ink suggests this advertising makeover: Maine's Office of Mandatory Tourism