Partners in Porn
has targeted the Adult Industry as a potential source for revenue.
Robert Berman, General Counsel for Acacia, has described the Adult
Industry as "low hanging fruit".
Acacia has not
singled out the Adult Industry for patent infringement of its DMT
patent that claims to own the process of downloading or streaming
audio/video from a web server. They have targeted companies across
the board including universities.
Acacia has recently
emailed a letter to Adult Industry companies for another round of
patent license marketing.
text was sent as a Word document to one of many webmaster who don't
have any audio or video on their website, but link
to a website that does in an "affiliate program". The
affiliate to a membership porn site receives a commission on sales
at the linked website.
Acacia is claiming
that by linking to a website that has audio/video and has not licensed
their patent, that the company is considered to be a "contributory
was unsuccessful at convincing the website that has audio/video
to license the patent, they have then targeted the thousands of
smaller companies/websites that direct traffic and signups to a
website where people can purchase membership to a porn site.
January 2, 2004
Via Email /
Thank you for
responding to our Final Notice letter on or before the November
30th deadline. Due to our delay in responding to you, we will still
make available our pre-November 30th royalty rates, provided that
you elect to enter into a license agreement with Acacia at this
indicate that you send traffic to one or more websites not licensed
by Acacia that provide the digital audio/video content for viewing-
(website removed). For this activity described above, you are potentially
liable for patent infringement and need a license from Acacia.
that if you only send traffic to other websites that provide the
digital audio/video content for viewing, and do not otherwise provide
access to digital audio/video content on your website, you may avoid
entering into a license with Acacia by sending (or redirecting)
traffic to websites that are licensed by Acacia. You may find a
current list of our licensed sponsors at LicensedSponsors.PDF
If you desire
to continue to send traffic to unlicensed sponsors, we are willing
to offer you an annual prepaid royalty based on two percent (2%)
of your actual gross sales for the immediately preceding twelve
(12) month period during the term. The term of the License Agreement
will begin on July 1, 2003. The royalty due for the first royalty
period of July 1, 2003 through June 30, 2004 is two percent (2%)
of your actual gross sales for the period of July 1, 2002 through
June 30, 2003. If you are interested in entering into a license
with Acacia at the pre-November 30th royalty rates set forth above,
please reply promptly to this email indicating your company name
and your gross sales between July 1, 2002 and June 30, 2003. Upon
receipt of that information, we will send you the appropriate license
agreement for your review and execution.
If you have
any questions or need additional information, please feel free to
visit our website at www.acaciatechnologies.com. Our website includes
copies of our patents, as well as engineering diagrams which illustrate
how some of our patent claims apply to the activity mentioned above.
These engineering diagrams should address any technical questions
you may have regarding our patented technology. To locate the Adult
Entertainment section of our website, from our homepage www.acaciatechnologies.com,
click on Technology?Internet? Adult Entertainment.
We look forward to hearing from you.
Karlton C. Butts
Telephone (949) 480-8315
Fax (949) 480-8391
above was added by me for emphasis to the text.
that was sent out to companies prior to the above letter was a "Certification
of Non-Use". This letter was seen as another joke by Acacia
that showed up in people's mailboxes. A scan of the letter is here.
letters have been the butt of many jokes, but 11 companies are taking
the issue seriously enough as they wait for their first day in court
on Feb 6th, to defend their companies against the patent claims.
More well known
porn company names like Hustler have already licensed Acacia's patent
and a percentage of the gross revenue from the various porn companies
are "taxed" by the patent license fee, making Acacia,
a partner in porn.