The Other Shoe

Acacia Research holds the patents that make streaming video images on the internet possible and they've decided that it's high time they got their slice of the pie we know as the porn business.

The company has won a preliminary injunction against five adult entertainment Web sites, barring them from using on-demand digital video or audio online, or providing advertising links to any other such sites. The ruling was a default decision, after the five companies declined to respond to a lawsuit, but does mark the first court validation of sweeping patent claims that could ultimately encompass virtually every site offering online multimedia content.

Acacia owns patents on the process of transmitting compressed audio or video, which is one of the most fundamental multimedia technologies used on the Internet.

"We will not allow for the unauthorized use of our technology," said Rob Berman, Acacia's general counsel. "Although not our preference, we are willing to use the power of the courts where necessary to stop unauthorized use."

Acacia edged slowly into the Internet scene last year, when it began seeking patent licensing revenue from a long list of adult entertainment companies. Its claims initially raised few eyebrows beyond the panicked adult-media businesses, but it became clear that Acacia's targets ultimately included the biggest Internet multimedia companies, cable giants, and Fortune 500 companies.

The company's claims are based on a series of patents it contends cover virtually all types of on-demand transmission of compressed audio or video, whether online, over ordinary cable-TV cables, or through other means.

Today, the adult entertainment industry accounts for the majority of profits made online. Acacia stands to make a fortune in licensing fees, if that's what all this is about. Interesting.

Enter Jenna Jameson...so to speak.

Jenna Jameson has worn many hats during her career on the fringe of pop culture, and taken off many more. Now, she is joining the legal fight against Acacia.

The adult Internet's challenge to Acacia Research Corp.'s streaming media patent claims has just acquired what may be its most visible partner - adult gigastar Jenna Jameson, whose activities include a popular Web operating and marketing company, has joined the challenge.

Jameson said May 6 that she wants to help fight what she called Acacia's "strong-arm tactics, which effectively want to put a tax on every single person using the Internet for video-on-demand services, Internet radio, pay-per-view movies, video news clips from sites like CNN.com, and even songs from iTunes or Amazon.com."

Jameson thus joins a challenge spearheaded by New Destiny/Homegrown Video chief Spike Goldberg, VideoSecrets chief Greg Clayman, and a group of adult Internet companies known as the Internet Media Protective Association, challenging Acacia's litigation against them by claiming the Acacia patents - known collectively as Digital Media Transmission - are invalid and don't otherwise cover the systems used by those companies.

"Acacia is making a blatant attempt to target the adult industry in its effort to extract unwarranted fees for alleged infringement of its patents," Jameson said. "I don?t think people realize the implications of what Acacia is trying to do. If Acacia succeeds in intimidating adult site owners, they will move to mainstream sites and begin charging fees that will have to be passed on to everyone who uses the Internet."

ClubJenna was hit with legal action from Acacia in late December 2003, along with seven other new adult Internet litigants regarding DMT.

"What can I say? I'm happy as can be that they've come on board," said Goldberg when learning of Jameson's announcement. "It's nice to see people come onboard and see ClubJenna is in this fight. She exemplifies the type of independent small businesses that are not going to let Acacia roll over us."

Having Jenna Jameson...ahem...on board can only be a good thing. I met her once several years ago. She was quite friendly and was good enough to laugh at what I hoped sounded like witticisms, but which I feared was coming out like the sort of lust-sotted babble she hears all the time.

That being said, one man's "unwarranted fees" are another man's licensing fee, and I think Acacia is about to strike it rich, and deservedly so.

Sorry, Jenna, but of all people, you should know that you can't end up on top every time.

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