Hustler, Vivid Video, and Wicked Pictures have signed licensing deals with Acacia Media Technologies to stream media online. The deals were announced October 6.
The three adult entertainment giants had been among those adult companies targeted by Acacia over the Newport Beach firm's streaming media patent claims. Acacia senior vice president and general counsel Rob Berman said he had been told the three companies studied the patent claims for several months and could well have mounted a legal challenge if they chose.
"They…clearly have the resources to stay in the litigation," Berman said. "Their decisions to enter into licenses with Acacia should send a message to the rest of the adult industry about the strength of our patents. Other companies have the same opportunity to benefit from our introductory rates if they act before November 30."
That referred to the deadline, announced in late September, for other companies Acacia has accused of patent infringement to either settle and gain a waiver of past royalty and fee claims, or go forward either with litigation or with a settlement that won't get a break on claimed past royalties or fees.
An attorney for at least one of the three companies, Paul Cambria, did not return a call for comment from AVN.com before this story went to press. But New Destiny Media/Homegrown Video chief Spike Goldberg said the Hustler/Vivid/Wicked settlement is not "the end of the world," as far as continuing the challenge to Acacia's streaming media patent claims is concerned, since among other things the Internet is not the prime income source for the three.
"(These) three companies are not (strictly) Internet companies," Goldberg said. "They may make money on the Internet, but it's not their (prime) livelihood. If you are freaking out about this, then you are doing exactly what Acacia wants you to do. The strategy has always been to shock you with costs, threaten you with legal action, and big signings that should freak you out on sight."
But Goldberg added that those who think any "big players" in adult are fighting because they care for the industry, "this should be a wakeup call. This will not be won by hoping a Larry Flynt will bankroll…litigation, as well he shouldn't. He did not make his money on the Internet. It's going to be fought and won by the companies that are still in the mix. We are not going anywhere. And if you think Acacia is not worried, think again."
Goldberg and VideoSecrets chief Greg Clayman are challenging the Acacia patent claims in court, as are several other companies, all under the rubric of the Internet Media Protective Association.
"How much is a license worth if you keep making 'special deals' to get them?" he said. "For all those who are worried that because they settled we are screwed. I say, who has settled? We will never be taken seriously as an industry until we learn to work together…(L)arge adult companies are getting cheap licenses and waiting it out, and meanwhile the small guy is going to pay through the ear…People ask me what the IMPA is for. Well, let me answer them. It is to protect us from the next time someone comes in and does this. We obviously are not going to be able to depend on the leaders of yesterday."
