In order to combat click fraud, iSearchNaked launched its new search engine with sponsored search based on flat monthly fees per keyword, instead of pay-per-click. Also, since the company charges a flat 25 $c per month, advertisers will not be paying huge amounts as a result of competitive auctions for very popular keywords. The first 12 advertisers will share the top 12 top positions and rotate on a random basis.
From taking a quick look, it's not quite clear to me how the company mixes sponsored and algorithmic (if any) results. If it wants to make a dent in the offerings of Google and Yahoo!, it needs a lot more transparancy. Sure, click fraud is a huge problem, but maybe accepting it as a variation on shop lifting (you have to learn to live with it) is better.