Far-L

Acacia continues its long retreat from the Patents it has asserted against the defendants in the Adult Media Defense Group. Acacia has agreed that under the court's construction all claims of the '702 patent are invalid. As to the second patent in the case, the '992 patent, under the court's construction, we believe claims 1-18 are also invalid. During summary judgment briefing, Acacia appeared to agree with our position. Now Acacia has agreed to dismiss claim 24 of the '992. The Court is currently working on a fourth claim construction order, which we believe will bring the claim construction process to an end and permit the group to file motions requesting the remaining claims be declared invalid. While Acacia will undoubtedly appeal Judge Ware's claim construction orders, we are confident that the appellate court will agree with Judge Ware's analysis and affirm his rulings thereby bringing the case to an end.

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