Acacia Media Technologies claims to own five US and 31 international patents for its DMT technology. This, it says, covers the transmission and receipt of digital content via the internet, cable, satellite and applies to a variety of programming and activities engaged in by cable and satellite companies including certain basic programming, pay per view, video on demand, and digital ad insertion.
The company started a process for licensing these streaming patents in summer 2002, by approaching adult entertainment companies that transmit, or provide access to, digital content on-line.
Acacia has also approached a number of mainstream webcasters, demanding royalties of up to 2% of the companies' annual revenue. To date Acacia has entered into 123 licence agreements for its technology.
In February last year Acacia sued 39 adult entertainment companies which had refused to enter into licensing arrangements. By the end of September, 23 of these companies had bought licenses, but the case is continuing against the remainder.
The action announced new targets: Comcast Corporation, Charter Communications, The DirectTV Group, Echostar Communications Corporation, Boulder Ridge Cable TV, Central Valley Cable TV, Seren Innovations, Cox Communications, and Hospitality Network (a subsidiary of Cox that supplies hotel in-room entertainment).
But Acacia has also stressed that it intends to continue its licensing discussions with cable and satellite companies, while retaining the option of adding additional companies to the lawsuit in the future.
As yet none of those targeted by the suit have offered any comment.
If Acacia succeeds in its actions it could start demanding royalties for almost all transmissions of compressed digital content, not only over the internet, but also over satellite and wireless services and pay-per-view cable TV.