Acacia Licenses With General Dynamics Interactive

General Dynamics Interactive Corp., a video-on-demand and high-speed Internet access subsidiary of the General Dynamics aviation and technological conglomerate, has signed a licensing deal with Acacia Research Corp. involving Acacia's claimed streaming media patents, which Acacia calls Digital Media Transmission.

"We have said all along that this was not just about the adult entertainment industry, and that we would be approaching mainstream companies," Acacia executive vice president Robert Berman told AVN.com. "General Dynamics is just one example. They are one of the leading technology companies in the world and their decision to license our DMT patents speaks for itself."

General Dynamics Interactive products include the Intrigue Multimedia System, which includes in-room video games, WiFi connectivity, video conferencing, high-definition television, and instant messaging capability, for the hospitality industry. Earlier this year, Acacia signed a DMT licensing deal with hospitality industry video provider LodgeNet.

The General Dynamics deal brings to 110 the number of such licensing deals Acacia has signed for the patents, which the company says they've signed with hotel in-room entertainment, e-learning, and online music, film, and adult entertainment companies.

Just days earlier, Acacia announced that it was seeking class action status for litigation against several adult entertainment companies and proposed two such companies, Global Media and Cybernet Ventures, be the class representatives.

Spike Goldberg, who chairs New Destiny/Homegrown Video, which is co-leading a group of adult Internet businesses that are challenging Acacia's streaming media patent claims, told AVN.com he didn't think the General Dynamics Interactive signing was especially significant.

"They're going to constantly come out with a parade of spin and try to explain to everybody that by virtue of somebody signing a license that they agree with these patents," Goldberg said, "when the actuality is people are making the hard decision of settling with them or fight them, and that comes down to money…. Is General Dynamics agreeing with the patent? No. But Acacia believes that by licensing with them, you're agreeing with their patents. That's just a puff screen."

But Berman said Acacia expects further such licensing agreements with other mainstream companies in the coming months, but he wouldn't say just how many the company could expect. "It's difficult to predict," he said. "We don't make predictions. We're at various stages of negotiations with mainstream companies, and we are certainly hopeful that we'll be completing additional deals in the near future."