WhenU is challenging the nation's first anti-spyware statute, alleging that the Utah law is unconstitutional.

WhenU filed for a temporary restraining order and preliminary injunction this week in the 3rd Judicial District Court in Salt Lake City, Utah, charging that Utah's Spyware Control Act violates free-speech and could hurt its business. The company's software lets advertisers deliver targeted pop-up and pop-under ads. The law takes effect next month.

"In addition to seeking a declaration, WhenU has asked the court for an injunction prohibiting the implementation and enforcement of the act prior to its effective date" on May 3, the company said in a statement. "Alternatively, WhenU has sought damages from Utah on the grounds that the act constitutes an unconstitutional taking of WhenU's property in violation of the Utah constitution."

The Utah bill, which is the first state to pass a law regulating spyware and other advertising software, bars companies from installing software that reports its users' online activity, sends personal data to other companies, or pops up ads without permission.