Sixty New Cable Licenses for Acacia's DMT

Sixty more cable television concerns have signed licenses for Acacia Research Corp.'s Digital Media Transmission streaming media patent group whose validity is still under challenge by a group of Adult Internet companies.

The company isn't yet saying who the new licensees are, but the total number of DMT license deals since Acacia began enforcing the patent in earnest stands at 264.

"The growth in use of our DMT technology by cable and TV companies continues to accelerate licensing opportunities in that industry," said Acacia chief executive Paul Ryan, announcing the new licensing deals. "Most cable TV companies are making the transition to receiving content in digital form, and companies that have launched video-on-demand services are reporting rapid adoption by their subscribers.

"Cable TV companies are also preparing to launch digital ad insertion services that will enable them to deliver demographically targeted TV commercials for advertisers," Ryan continued. "The higher rates for targeted ads should generate increased profit margins for their TV ad sales and give them a competitive advantage over traditional broadcasters who cannot deliver targeted TV ads."

News of the new cable television licenses didn't exactly faze New Destiny/Homegrown Video chief Spike Goldberg, who with VideoSecrets chief Greg Clayman co-leads a group of Adult Internet companies challenging the DMT patent group's validity.

"Acacia is singing the same old song that was off the charts years ago," Goldberg said. "Nothing compels anybody to get a license at this point, especially with the judge about to make his final decision on the Markman rulings which could pretty much destroy the majority of their claims against the defendants."

The sides are scheduled for a two-day federal court hearing in Santa Ana, California, beginning December 2. During the summer, U.S. District Judge James Ware, in preliminary Markman-process findings, held several of the Acacia claim terms could not be defined while others might be definable. The challengers filed in late September for a summary judgment declaring the bulk of the DMT patent group invalid.

"Anyone who's sitting on the sidelines worried at this point – I could never tell someone not to be scared – but if there was ever a time to wait and see, this is it," Clayman said. "A lot is going to happen."