The decision by Hustler, Vivid, and Wicked to settle with Acacia means only that these companies have made a business decision, and as Ken pointed out, does not mean that they believe Acacia?s case has any merit?as Acacia would like the Internet community to believe. These three companies are not large players on the Internet stage. The bulk of their business comes from non-Internet sources, so for them it made sense to pay Acacia rather than paying attorneys to defend against Acacia?s attack on our industry.
If you are freaking out about this settlement, then you are doing exactly what Acacia wants you to do. Acacia?s strategy from day one has been to offer to settle for just a little less than the cost of defending against their lawsuit. In this way, Acacia believes it can generate profits without having to expose its patents to the scrutiny of the Court. The Joint Defense Group has countered Acacia?s strategy by pooling resources. The Hustler group chose not to join the Group and was faced with the decision of paying attorney fees to its First Amendment attorneys (they did not hire patent attorneys) or paying Acacia to make them go away?they chose to pay Acacia off.
Anyone under the impression that the Acacia fight would be won because Hustler would bank roll the defense simply does not understand the industry. Larry Flynt did not make his money on the Internet. He has little direct interest in the outcome of the litigation because he can pay Acacia a few thousand dollars and be done with a multi-year annoyance. This fight is going to be fought and won by the companies that are still in the mix, and if you think Acacia is not worried--think again! How important can their patents really be if Acacia needs to keep making ?special deals? to get any money from anyone? Recall, Acacia?s plan is to make $200 million per year on these patents and last quarter it made $19,000. What more concrete proof do we need that the sky is not really falling?
What we need to focus on is that our industry will never be taken seriously until we learn to work together. The best defense against companies like Acacia who tell you that it is cheaper to pay them than paying attorneys is to come together as a group and share the costs of defense. Acacia may be the first company to view our industry as a ?fragmented? group of ?business amateurs,? but it will not likely be the last. Unless we want to see our profits going into the pockets of others 2% of gross at a time, companies in our industry need to recognize that we share common interests.
The simple fact remains that this case will be won by small companies working together toward the common good. This is why we continue to need your contributions, no matter how small, to fight this fight. Mainstream companies will not be our salvation because Acacia knows better than to sue companies with the money to kill its patents. Large adult companies will not be our salvation because they can pay a few dollars for peace of mind and continue to make their money outside of the Internet. The simple truth is that it will be the small guys who are going to fight this fight even though we are the least able to do it.
The best thing that I have seen from this case is the willingness of the small companies in our industry to step up to the plate and fight for what they believe is right?that is what leadership is all about. Our industry is obviously not going to be able to depend on the leaders of yesterday because the Internet is not the key to their businesses. The Internet industry needs leaders focused on what is in the best interest of the Internet. If you have an interest in continuing to build our industry--get informed, get involved, and take a stand. Because the business you will be saving will likely be your own, I urge you to join the IMPA, read the postings on ?Fight the Patent,? and donate your time and money to fighting an unjustified and ill-motivated attack on our industry.
If you are freaking out about this settlement, then you are doing exactly what Acacia wants you to do. Acacia?s strategy from day one has been to offer to settle for just a little less than the cost of defending against their lawsuit. In this way, Acacia believes it can generate profits without having to expose its patents to the scrutiny of the Court. The Joint Defense Group has countered Acacia?s strategy by pooling resources. The Hustler group chose not to join the Group and was faced with the decision of paying attorney fees to its First Amendment attorneys (they did not hire patent attorneys) or paying Acacia to make them go away?they chose to pay Acacia off.
Anyone under the impression that the Acacia fight would be won because Hustler would bank roll the defense simply does not understand the industry. Larry Flynt did not make his money on the Internet. He has little direct interest in the outcome of the litigation because he can pay Acacia a few thousand dollars and be done with a multi-year annoyance. This fight is going to be fought and won by the companies that are still in the mix, and if you think Acacia is not worried--think again! How important can their patents really be if Acacia needs to keep making ?special deals? to get any money from anyone? Recall, Acacia?s plan is to make $200 million per year on these patents and last quarter it made $19,000. What more concrete proof do we need that the sky is not really falling?
What we need to focus on is that our industry will never be taken seriously until we learn to work together. The best defense against companies like Acacia who tell you that it is cheaper to pay them than paying attorneys is to come together as a group and share the costs of defense. Acacia may be the first company to view our industry as a ?fragmented? group of ?business amateurs,? but it will not likely be the last. Unless we want to see our profits going into the pockets of others 2% of gross at a time, companies in our industry need to recognize that we share common interests.
The simple fact remains that this case will be won by small companies working together toward the common good. This is why we continue to need your contributions, no matter how small, to fight this fight. Mainstream companies will not be our salvation because Acacia knows better than to sue companies with the money to kill its patents. Large adult companies will not be our salvation because they can pay a few dollars for peace of mind and continue to make their money outside of the Internet. The simple truth is that it will be the small guys who are going to fight this fight even though we are the least able to do it.
The best thing that I have seen from this case is the willingness of the small companies in our industry to step up to the plate and fight for what they believe is right?that is what leadership is all about. Our industry is obviously not going to be able to depend on the leaders of yesterday because the Internet is not the key to their businesses. The Internet industry needs leaders focused on what is in the best interest of the Internet. If you have an interest in continuing to build our industry--get informed, get involved, and take a stand. Because the business you will be saving will likely be your own, I urge you to join the IMPA, read the postings on ?Fight the Patent,? and donate your time and money to fighting an unjustified and ill-motivated attack on our industry.
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