Petteri Pyyny
6 Feb 2003 12:56
A relatively small company called Acacia has launched an attack against companies who operate either audio or video streaming services, claiming that it owns various patents that cover basic streaming technology.
Company, best known of its patents in American censorship chip found inside TVs, the V-Chip, launched its patent claims in last year, first targetting various adult sites. Virtually all adult sites have refused to license Acacia's claimed patents, but some have accepted the licensing fees. Biggest victory (at least of those known publicly) so far for Acacia has been Radio Free Virgin, part of the enormous Virgin Group, owned by British Richard Branson.
According to Radio Free Virgin, it examined the patent claims carefully and thought that they were tight enough to sign the licensing contract. Company also says that it considers that paying a 0.75% of its revenue as licensing fees for Acacia is a cheaper alternative in long run than a costly legal process. And this might be the case for various smaller companies -- do you risk paying millions in legal costs or do you pay between 0.75 and 2 per cent of your revenue in licensing fees.
Source: News.com