Since switching from a free, ad-sponsored business model to a paid subscription model last fall, Seattle-based N2H2 Inc.—the nation's top filtering provider to K-12 schools—says it has retained 62 percent of its school customers who used the Bess Partners Program.

But with new legislation forcing schools to filter their web access or lose federal funding, the company's announcement begs a question: Where have the other 38 percent of N2H2's customers gone?

School administrators contacted

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