Home > News > Adult Faces Uphill Battle to Nullify ‘Broad’ Patents • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

Adult Faces Uphill Battle to Nullify ‘Broad’ Patents

Adult Faces Uphill Battle to Nullify ‘Broad’ Patents
Get XBIZ News
Jul 15, 2004 3:53 PM PDT    Text size: 
NEWPORT BEACH, Calif. — Despite the adult industry’s hurrahs after U.S. District Court Judge James Ware sided with the Internet companies against Acacia Technology Group in his “Markman” decisions, they still face an uphill battle.

The fact is only 614 of the nearly 7 million existing patents have been revoked, and 3,927 patents have been narrowed since the U.S. Patent and Trademark Office began conducting re-examinations in 1981.

In his “Markman” order, Ware specifically was bothered by the term “identification encoding means,” which he said is not definable and thus would invalidate some claims on one of Acacia’s patents.

A Markman order allows the judge overseeing a patent dispute to clarify some of the terms used to define the scope of a patent.

Ware called into question some of the company's video-streaming patents that the defendants, New Destiny Internet Group, has called “overly broad.”

Ware invited the defendants to seek a final decision that could invalidate some of Acacia's patent claims, which the company says cover the distribution of digital content through the Internet, cable, satellite and wireless systems.

As a result, Acacia’s stock has suffered severely, despite an impromptu conference call to investors on Tuesday to explain the situation.

Immediately following Monday’s Markman order, shares of Acacia Technologies Group plunged Tuesday, falling as much as 37 percent, with a volume of trading that was 17 times more than its daily average.

At the close of Thursday’s Nasdaq session, Acacia's stock gained slightly at $3.88 — cut almost in half from October’s per share price at $8.58 — and had a volume of more than four times its daily average.

Acacia's streaming-media patents, granted to the founders of Greenwich Information Technologies in the 1990s, weren't enforced until the Newport Beach, Calif., company bought them in 2001.

It has since secured dozens of licensing deals with some adult companies and sued the cable and satellite providers for patent infringement last month.

While a scheduled conference call among the parties next month may help determine the following legal step, more tech companies are shouting to regulators for an overhaul.

In an October report, the Federal Trade Commission recommended that changes in the patent system need to be made, including improvements for challenging patents.

Under the auspices of the U.S. Department of Commerce, the patent office has taken steps to improve the process but acknowledges the system's shortcomings, including budget constraints — nearly 3,500 trained professionals examine 200,000 patent applications every year.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

LEGAL PERSPECTIVES

Preventing Legal Problems Before They Start

Dentists typically recommend that a person’s teeth be cleaned every six months and that oral X-rays be taken at least once every year. Internists recommend that a person receive a physical examination... More »

Could Adult Content Be Banned?

Earlier this month, I met with the Free Speech Coalition’s board of directors for our annual review. Despite the headwinds our industry faces, politically and economically, we are, as an organization,... More »

Porn ‘Public Health Crisis’ Is False, Dangerous

We are witnessing the early stages of a moral panic, the likes of which we have not seen since the Reagan Administration. As I write this, there are 27 states in the process of passing mandatory porn... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Access the latest issues of the industry's leading trade publications in digital form. View online or download for offline viewing.

UPCOMING EVENTS

XBIZ Retreat

May 30 - Jun 03
Miami, Florida

XBIZ Miami 2017

May 30 - Jun 02
Miami, Florida

XShow 18+ 2017

Jun 01 - Jun 03
Moscow, Russia

Cam Summit

Jun 02 - Jun 04
Lloret de Mar, Spain
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!