opinion

Mo' Patents, Mo' Money!

As you can tell by reading the news and this website, there is a new way to make money. Forget about making a product that people will buy and use. Forget about inventing gadgets and devices that cause consumers to flock to you. Forget about starting a dot-com business and trying to be execute a business plan.

The way to make money nowadays is to buy patents, or to file patents for all kinds of ideas, and then later, license the patent to other companies.

For those that remember the Unisys/GIF issue of having to license the GIF patent, there is a small sigh of relief that the patent just expired! But as you recall, Unisys came out of dormancy by requiring software manufacturers to license the GIF image format. GIF images were so widely used by website and graphic programs that the whole computer industry was up in arms.

A company down in Austin, Texas is now coming back for the Unisys/GIF sequel and claiming the patent to JPEG! They are taking the right approach towards patent enforcement/licensing, by targeting businesses that MAKE PRODUCTS that utilize these patents.

If Forgent had followed Acacia's strategy, they would be suing every website that had JPEG images on them. This author believes that Acacia should have FIRST targeted companies like Real Networks and Microsoft for producing the technology that they felt violated their patents. If they really did own the patent to streaming/downloading audio, then let the big businesses (who are profitable) deal with the licensing issues. They in turn would end up passing down costs to the consumers.

Speaking of which, do you know how much money a DVD manufacturer has to pay for MPEG, Dolby, and DVD licensing to make a DVD player? The answer is about $20 per machine.

This article details the licensing fees and how China is producing DVD players WITHOUT paying for licenses (bad Chinese manufacturers, bad). The cost of licensing a patent gets passed onto the consumers eventually, so with these kinds of licensing fees, and despite mass purchases by Walmart, we'll probably never see a $20 DVD player for sale.

Patents that don't have any prior art to invalidate them are good patents. So while it means that products cost more due to paying for a patent license, it is the patent holder's right to profit from their inventions.

So if you are up late at night and watching TV, and you see those ads for patenting your invention or idea, maybe you might pay more attention to them now. Who knows, you may have some crazy idea today, that technologically speaking can't be created, but wait about 5-10 years and maybe it will. And by then, you'll be able to start suing companies and licensing patents.

You don't even need to have a good patent; just interpret a patent to mean more than it really represents. You don't even need a business plan or investors! Just come up with crazy ideas, file the patents, and wait for technology and people to start using your idea. This is the new, new, new, new, new, new economy.

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 Articles

trends

AI at Work: The Tools and Practices Powering Creativity, Commerce and Compliance

For years, artificial intelligence felt like the plot of a science-fiction movie. Pop culture gave us Skynet from “The Terminator,” the replicants of “Blade Runner” and countless visions of machines replacing human creativity altogether. AI was cast as either humanity's next great breakthrough or the beginning of a dystopian future.

Jackie Backman ·
opinion

Key Questions Online Merchants Should Know About PCI Compliance

Choosing a payment provider involves more than comparing features and pricing. It's also about trusting that your customers' payment information is being handled securely. Every August, Segpay is recertified as a Level 1 PCI-compliant service provider, a milestone the company has achieved for the past 20 years. Having helped write Segpay's original PCI policy documents more than two decades ago, I've seen firsthand how PCI compliance has evolved.

Cathy Beardsley ·
profile

New Moon Network's Savannah Sly on Turning Lived Experience Into Advocacy

Savannah Sly is the first to admit she didn't always understand sex work. At 18, she was an art student in Boston, working part-time at a box office and, as she puts it, "broke as a joke." While looking for ways to make ends meet, she often found herself browsing Craigslist's adult ads, intrigued by the women advertising their services.

Jackie Backman ·
opinion

How to Safeguard Your Website Against CIPA Claims

There is a new wave of lawsuits targeting online businesses, including adult websites. These suits involve the California Invasion of Privacy Act (CIPA), and they are becoming increasingly prevalent. In fact, three different clients of my law firm were recently served or threatened with CIPA lawsuits — all in the same week.

Nick Zargarpour ·
trends

How Clear Talent Contracts Can Save Time and Money

The adult industry has always been defined by its ability to evolve. It embraced online distribution before much of mainstream entertainment did, pioneered subscription-based business models, and continues to evolve in areas ranging from streaming to AI.

Corey Silverstein ·
profile

Jerkmate's Lili L. on Dropping Beats to Fuel Creator Success

Long before joining the Jerkmate team as a marketing strategist, Lili L. was the kind of person who always felt like she needed a new challenge.

Women In Adult ·
opinion

What Mastercard's Specialty Fee Overhaul Means for Merchants

For business owners in the adult and specialty spaces, the rules have always been written in someone else’s office. The latest Mastercard changes are no exception, though there are practical ways merchants can begin preparing now.

Jonathan Corona ·
opinion

What to Know About Content Restrictions Across Global Markets

Throughout 2025, age verification remained a major focus as merchants worked to meet the requirements of 26 U.S. states, country-specific regulations in France, the UK, and Italy, and evolving guidance from the European Commission.

Cathy Beardsley ·
opinion

Key Strategies for Building an Effective Website Compliance Program

For adult website operators, compliance can no longer live in a folder that only opens when a bank, regulator, attorney, or payment processor starts asking questions.

Corey D. Silverstein ·
profile

Ricci Levy on Standing Up for the Right to Be Heard

When Ricci Levy speaks about human rights, she does not use detached, academic language. She speaks with urgency, emotion and the kind of passion that immediately makes it clear just how deeply personal this work is for her.

Women In Adult ·
Show More