Acacia Media Technologies claims to own five US and 31
international patents for its DMT technology. This, it says, covers
the transmission and receipt of digital content via the internet,
cable, satellite and applies to a variety of programming and
activities engaged in by cable and satellite companies including
certain basic programming, pay per view, video on demand, and
digital ad insertion.
The company started a process for licensing these streaming
patents in summer 2002, by approaching adult entertainment
companies that transmit, or provide access to, digital content
on-line.
Acacia has also approached a number of mainstream webcasters,
demanding royalties of up to 2% of the companies' annual revenue.
To date Acacia has entered into 123 licence agreements for its
technology.
In February last year Acacia sued 39 adult entertainment
companies which had refused to enter into licensing arrangements.
By the end of September, 23 of these companies had bought licenses,
but the case is continuing against the remainder.
The action announced new targets: Comcast Corporation, Charter
Communications, The DirectTV Group, Echostar Communications
Corporation, Boulder Ridge Cable TV, Central Valley Cable TV, Seren
Innovations, Cox Communications, and Hospitality Network (a
subsidiary of Cox that supplies hotel in-room entertainment).
But Acacia has also stressed that it intends to continue its
licensing discussions with cable and satellite companies, while
retaining the option of adding additional companies to the lawsuit
in the future.
As yet none of those targeted by the suit have offered any
comment.
If Acacia succeeds in its actions it could start demanding
royalties for almost all transmissions of compressed digital
content, not only over the internet, but also over satellite and
wireless services and pay-per-view cable TV.
