CrakRevenue Wins Appeal in 'Virtual Affiliate' Patent Fight

CrakRevenue Wins Appeal in 'Virtual Affiliate' Patent Fight

WASHINGTON — The U.S. Court of Appeals for the Federal Circuit has sided with CPA network CrakRevenue’s parent company in a patent dispute over “virtual affiliates.”

On Friday, an appeals panel agreed with a federal court’s decision to invalidate a patent that works with methods and systems used for configuring an existing affiliate network to receive “virtual affiliates” from an affiliate pooling network.

Patent holder Essociate Inc. sued CrakMedia, CrakRevenue’s parent company, and mainstream CPA company Clickbooth three years ago for patent infringement over the employment of U.S. Patent No. 6,804,660, a process that allows a merchant to avoid or reduce competition while also allowing it to track which and how many customers the referring entity directs to the merchant.

The suit was one of numerous patent infringement claims filed by Essociate against numerous affiliate networks dating back to 2009. Essociate is led by co-founders Evan Horowitz and Michael Landau.

The lower court judge who heard the case said in his original ruling that “mathematical algorithms, including those executed on a generic computer, are abstract ideas” and rejected Essociate’s contentions that its patent was valid. Implementing an abstract idea on a generic computer is not patentable.

The  judge agreed with CrakMedia and ClickBooth’s contention that the steps in the underlying patent simply embody the fundamental economic practice of receiving and tracking referrals from referral sources, and providing incentives to those referral sources — both concepts that involve the “mere formation and manipulation of economic relations.”

The judge further ruled that Essociate’s patent does nothing more than seek to limit the use of the abstract idea of receiving and tracking referrals from referral sources to the technological environment of an existing affiliate system. 

Essociate appealed the case, and on Friday a Federal Circuit panel ruled for CrakMedia and ClickBooth, affirming the lower court’s ruling.

CrakRevenue's founder and CEO, Nicolas Chretien, said of the decision: “It’s a big day for us. We fought for something we believed in, although a settlement would have certainly been less costly than litigation, we couldn’t let patent trolls continue to bully us and others in our industry.”

“We can now focus on the goal we set four years ago: centralize all the industry’s top offers with the CrakRevenue network.”

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Tube Sites Submitter Introduces 'AI Video Description Generator' Feature

Tube Sites Submitter has introduced its new AI Video Description Generator feature for its platform.

Pineapple Support Releases End of Year Review for 2025

Pineapple Support has released its End of Year Review for 2025, detailing the organization's achievements, challenges, and new initiatives.

XBIZ Miami 2026 Lets the Good Times Roll at New South Beach Venue

Pack your favorite shades and sexiest poolside looks, because XBIZ Miami is splashing into a new hotspot — the chic Goodtime Hotel in the heart of Miami Beach — May 11–14.

Arcom Threatens to Block, Delist 2 Adult Sites Over AV Violation

French media regulator Arcom has sent enforcement notices to the operators of two adult websites that the agency says have failed to implement age verification as required under France’s Security and Regulation of the Digital Space (SREN) law.

Final Defendant Sentenced in GirlsDoPorn Case

Former adult producer Doug Wiederhold, previously a business partner of GirlsDoPorn owner Michael Pratt, was sentenced on Friday in federal court to four years in prison for conspiracy to commit sex trafficking.

FTC Takes Another Step Toward New 'Click to Cancel' Rule

The Federal Trade Commission (FTC) is negotiating the latest procedural hurdle in its effort to renew rulemaking concerning negative option plans, after a federal court previously vacated a “click-to-cancel” rule aimed at making it easier for consumers to cancel online subscriptions.

Pineapple Support, Brazzers to Host 'Navigating Relationships' Support Group

Pineapple Support and Brazzers are hosting a free online support group for performers to build and maintain healthy relationships.

Aylo, SWOP Behind Bars to Host 'Deplatforming' Community Panel

Aylo and Sex Workers Outreach Project (SWOP) Behind Bars will host a panel on creators’ rights and deplatforming on Feb. 10 at 3 p.m. (EST).

Adult Trade Group Pearl Industry Network to Debut at Taboo Vancouver

Pearl Industry Network (PiN), a new trade group for the adult industry focused on content creators, will debut at Taboo Vancouver adult lifestyle and wellness expo next week.

Show More