Protect your streaming media rights!

GFED · #1 28-Jul-2003, 19:30

Acacia Media Technologies
U.S. Patent numbers 5,132,992; 5,253,275; 5,550,863; 6,002,720; 6,144,702

Acacia Media Technologies has amassed an intellectual property portfolio covering several technologies, including patents that claim, among other things, the transmission of compressed video and music content via the Internet.

In a systematic way, Acacia began offering licenses late last year to several Web content providers, starting first with adult websites. Many of those sites banned together to try to fight Acacia's patents. Others agreed to license the technology. Acacia has moved on to more mainstream content providers, securing a license from many including Radio Free Virgin. Citing that license as an example, Acacia is also informing other online content providers like RadioIO that its actions allegedly infringe Acacia's patents and seeking up to three-quarters of a percent of the company's revenue as a licensing fee.

www.chillingeffects.org

www.d-moneyshow.com

biz.yahoo.com

jrobbio · #2 28-Jul-2003, 21:26

I'm not overly certain about this one. The Unisys case relating to the tzw compression of Gif files was highly unfair as a patent for such a simple algorithm should have never been allowed and is still causing angst on webmasters until April/May of next year.

However, a quick readup (thanks for the links) made me think that all these patents that Acacia have are terribly ambiguous I mean what does it refer to when it means file compression? This patent was submitted in 1992 and has taken about 7 years to get through in most places.

Maybe you can explain how this is going to effect the streaming rights of webmasters as I'm not totally sure what's going on. Are we talking about wmv's, mpg's, asf's when your talking about streaming. What about real player files?

Rob

GFED · #3 29-Jul-2003, 05:40

Here are some more links and quotes... I am trying to get this information to the public. I've asked some peers to help, but I guess they are scared of being sued. Acacia has already filed for conspiracy charges. They are attacking adult webmasters first because most people hate us. But if they win against us, there will be no end to who they can go after next.

www.afrochicks.com

Quote:

First of all thoughts about the above thread. I haven't received a packet so I haven't had a chance to go over anything that some of you are looking at. However I wanted to throw this comment out there for further discussion and maybe somebody that has a packet can clear this up.

The other thread basically says that Acacia does have a patent related to streaming video but that patent is for 1 particular type. Other theories have been that Acacia is just bullying people into signing hoping they won't decide to fight. Also, others have stated that once you sign the contract they send you it is binding regardless of what happens with the patent suit that is pending between Acacia and IMPA.

If this is true wouldn't the people that already signed a contract stating they are going to be paying Acacia a percentage of their earnings have to continue to do so even if Acacia loses and the patent is overturned? If this is a posibility Acacia may just be using a scare tactic to get as many companies as possible to enter into an agreement with them. Then if their patent is overturned they tell the companies that signed that they must continue to pay because they have entered into a binding contract? Acacia may have known all along that they don't have a chance of keeping the patent and are just trying to get as many people to sign a contract with them as they can before it's overturned in court.

Maybe someone here has a copy of the contract that could clarify this? However, I imagine the contract states that you can't share the information with anyone else.

Another thing that strikes me funny is that Acacia wants a percentage of your gross income regardless of what percentage of your business uses the software/idea in question. For arguements sake lets say Acacia has a valid patent and every right to request money from people streaming video. What if I have a site that is 98% text and pictures and 2% video? Acacia is entitled to 2% of my entire operation? I only make approximately 2% of my income from video so I would be in essence paying 100% of the gross from video? Even with a valid patent I doubt this would be legal.

To me this sounds too much like a gym membership. Once you sign you are royally ****ed no matter what the outcome with lawsuit to overturn the patent because you entered into a binding contract. The fact that Acacia's swag is getting more threatening looks like an indicator they are trying to scare as many people into signing as they can before the inevitable happens. If they get a couple million a year in contracts signed and then the patent is overturned this could be what they planned all along.

Like I said, I haven't had contact with them so I could be way off base here. Does anybody that has received the material and/or a contract want to tell me if I'm going in the wrong direction with this?

Hell I could send every webmaster on here a letter demanding payment for using a text link and threaten to sue if they don't pay me. Anybody can sue for any reason, that doesn't mean I would win. However, if you signed a contract with me ahead of time giving me the right to a percentage of your business income you would be held liable in court.

more topics at our main discussion board.
go****yourself.com

moderators please forgive me for the links to other forum/adult site but this problem is very important not only for us adult webmasters I hope you realize.

GFED · #4 29-Jul-2003, 07:22

go****yourself.com

jrobbio · #5 29-Jul-2003, 10:35

GFED, that thread you sent requires membership to view. Is it possible for you to just reiterate what it says for everyone else.

It does sound like bullying tactics to me, did you read the contract and correspondance letters here: http://www.radioio.com/acacia.pdf

I can't see how they can askk for a straight percent of the earnings especially for sites that its only a partial content of. I can understand with radio free Virgin possibly since they use the supposed patented architecture all the time.

I personally wouldn't sign a contract like that unless there was a LOT of clauses available wsithin it such as if the patent was rejected it would become anulled.

I just found this: http://news.com.com/2100-1023-983552...g=fd_lede2_hed and its the best summarisation of the situation that I've seen. Basically Acacia Media Technologies have bought out companies that had the patents (called prior art) that they required in order to get the legal power to enforce the contracts were valid.

I thought this bit was ominous:

Quote:

Berman said other letters have gone out to companies large and small, although he would neither confirm nor deny whether Acacia has tried to tap larger players such as America Online, RealNetworks or Microsoft.

The thing that outrages me is that they are claiming it is not a scam, but this company has basically made a mockery of the patenting system by changing the ownerships of the patents and suddenly charging people for something they already have. This is the only thing that I can see the courts reasoning behind that it patented things that already existed and were freely available and the fact that it is so generic. I can't see the cable companies allowing them to come in and charge them for pay-per-view as that is what the patents involve too.

I'll leave you with this to think about:

Quote:

Judges and juries have been known to throw out overbroad patents before, and legal teams on the defense often spend considerably more time than the overworked United States Patent and Trademark Office in researching possible previous inventions that would invalidate a patent.

Rob

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