JANUARY 2010 For most adult entertainment entrepreneurs intellectual property issues are usually constrained to acquiring or protecting copyrights in their content or trademark rights in their brands.But there is another very important type of intellectual property that is all too often overlooked by adult entertainment companies, patents.The Acacia lawsuits are now infamous in the industry due to their enormous legal costs to adult companies, running into the millions of dollars over the six years it took for the defendants to prevail at the trial level.
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In fact, even if a defendant is successful in convincing the court to rule that the patent claims asserted by a plaintiff are entirely invalid to begin with, the defendant is still unlikely to get any reimbursement of attorney’s fees unless the defendant can show that the patentee committed fraud on the patent office, which is rare and very difficult to prove.
In 2009 alone, two different “patent troll” plaintiffs independently filed two new patent infringement cases against a number of adult entertainment companies. 5, 734, 961 that is directed to the downloading of media, such as video.
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These include patents involving online content distribution technologies, live videoconferencing, online dating, social networks, geomarketing, geotracking, haptics, virtual worlds, and almost every other technology either used by the adult entertainment business today, or likely to be used by it in the future.
The growing number of patents involving technologies commonly used by adult entertainment companies is an important matter with serious ramifications for adult companies because the patent owners possess the broadest and most powerfully enforceable of all the intellectual property rights provided by law.
But to date, the biggest patent litigation threats to the industry to date have come from outside the industry.
For example, six years ago scores of companies in the industry were forced to deal with lawsuits filed, or threatened to be filed, against them by Acacia Media Technologies claiming that the adult companies infringed Acacia’s patents dealing with streamed media.
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