In Their Own Words - An Open Letter
- by Spike Goldberg
An Open Letter To The Adult Entertainment Industry:
It's Your Choice: Now or Never!!
As you must know by now, Acacia Technologies' (Nasdaq: ACTG) two-year running attack on the Adult Entertainment Industry moves steadily forward. From the start, the Acacia plan has been to take advantage of what they perceive ais an extremely profitable, yet easily intimidated industry that rolls over when confronted by a fight. Rob Berman, Vice-President of Acacia, refers to our industry as "low hanging fruit."
Acacia's business model is to acquire patents and enforce them through any means - especially with expensive litigation - to generate license fees. Patent litigation is among the most expensive types of lawsuits that companies or individuals can enter into. Attorneys who specialize in patent law charge upwards of $400-$600 per hour.
Over the past two years, some companies in our industry have settled with Acacia because they thought it was less expensive than litigating. Those settlements helped make Acacia more confident and strengthened their resolve to take further aggressive steps to achieve their business plan. We understand that everyone has business decisions to make and we have made ours.
Two years ago, Gregory Clayman, President, VS Media, Inc., the parent company of VideoSecrets.com and Spike Goldberg, President, New Destiny Internet Group, the Internet division of Home Grown Video, took it upon themselves to involve the prestigious law firm, Fish and Richardson.
This involvement helped create a Joint Defense Group dedicated to fighting Acacia. Members of the defense group includeing, among others: VS Media, Homegrown Video, National A-1 Internet, Clubjenna, AEBN, Webmaster Paradise, GAMELINK, Ademia, Cybernet Ventures, Inc., Lightspeed, ARS, CyberNet Entertainment LLC, Cyber Trend, Inc, GlobalAvs/ProAdult, Pro-Adult, ATK, and Video Bliss Inc.
Over the past two years, Goldberg, Clayman and the Joint Defense Group have spent over a million dollars, and more hours of their valuable time than they can count, fighting for what they believe is right. When the fight is over - win or lose - members will know they did the right thing.
During this time, some of the heaviest hitters in our industry have sat on the sidelines as well as on their hands and checkbooks watching this play out. Many of these well-known industry names have been in business for five, ten, and even twenty years. They have done NOTHING to support this fight.
These are webmasters, studio owners, and others who have made substantial amounts of money over the years. Nevertheless, they remain steadfastly silent and reluctant to step up to the plate despite knowing that this threatens the entire Adult Entertainment Industry.
Acacia is now seeking approval of a class action lawsuit against the entire Adult Internet Industry. If granted, Acacia will have the ability to litigate whether their patents are valid and enforceable against a single company, rather than against our entire industry. Even worse, if they win, that verdict could bind the entire industry.
In simple terms, if Acacia wins, they will be at your doorstep demanding money. YOU WILL NOT EVEN HAVE THE ABILITY TO CONTEST OR CHALLENGE THEIR PATENTS IN COURT.
The Joint Defense Group believes that it is time for industry members who have remained uninvolved to step up to the plate. Now is the time for you to save your own skin!
We have fought hard and Acacia is running scared. Even as you read this, Acacia is lobbying hard to make a last minute deal with Joint Defense Group members for a settlement before the Court issues a ruling that could end Acacia's attack.
If the Joint Defense Group were to accept Acacia's offer, it could stop paying legal fees, cut a sweetheart deal with Acacia, and leave the rest of the industry to fend for itself. Instead, we continue to believe it is far better for our industry to band together to remove the Acacia threat once and for all. When we do this, we will send a loud and clear message to others who might see our industry as low hanging fruit, ripe for picking.
Now is the time for all Webmasters, studios, and others, in any way related to the Adult Internet, to do the right thing. It is a disgrace that only a handful have become members of the Joint Defense Group and contributed time and money to our effort. Those involved wonder how you sleep at night. Even if you settled, or are not immediately affected or threatened by Acacia's alleged patent claims, YOU MUST HELP THE CAUSE! Groups like ours are empowered when our peers demonstrate support with financial assistance - not just empty rhetoric.
We are not asking you to forego the new Mercedes, the lavish vacation, or your knock 'em dead presentation at the next Internet show. We are simply asking that you recognize that the time has arrived for you to tmake a stand against any and all future attempts to attack our industry.
The Adult Internet has been your life. It has let allowed you to live well from the money you've made. Now is the time to give something back, to help everyone.
If that is not enough motivation, then think of it this way: If the Joint Defense Group does not win, you will be sending checks every month to your new partner-Acacia. Even more important, if this case is lost, there may be no one left to fight against the next money- hungry group with a patent that wants a piece of our action.
The Joint Defense Group spends over $100K per MONTH fighting this battle. We need your help to build our war chest so that we can fight to win. Acacia is on the run, but they have $50 million in the bank to keep fighting. If they can outlast the Joint Defense Group in this battle, then there will be no one in the industry to stop their attack. The result of this battle will have implications for everyone: big or small, adult or mainstream. Now is the time to support the efforts of your fellow companies fighting the jokesters whose business plan is to litigate against whomever they think is an easy target!
We need them to understand -NOW- that when forced, the Adult Entertainment Industry UNITES and does NOT roll over and play dead out of fear. We need your help. We need it now.
It's great to know we have your moral support and sideline cheers. BUT IT IS SIMPLY NOT ENOUGH! What we really need are substantial donations from everyone no matter how big or small. We know many of you settled with Acacia but have always had second thoughts about it. Even if you settled, you can still help. If you cannot contribute cash, we will help you find other ways to help the Joint Defense Group.
It took courage to make our original stand. It takes even more to write an open letter like this to everyone in our industry. HOWEVER, THE TIME FOR INACTION AND THE HO-HUM ATTITUDES HAS PASSED.
Pick up the phone today and call 1-949-716-8080 to donate to this fight by credit card. You can also send contributions to the Joint Defense Group at the following address:
Acacia Joint Defense Group
c/o Spike Goldberg / New Destiny
27111 Aliso Viejo Rd #180,
Aliso Viejo, CA 92656
Our industry's shame does not come from our products. It comes from those who sit on their hands and their checkbooks while others fight the battles that ultimately benefit the entire industry. It is time to do the right thing or suffer the consequences of your timidity and passivity long into the future!
-- Spike Goldberg, IMPAI.org
Editor's Note: Klixxx.com features many news articles on the Acacia situation. Spike Goldberg's Equal Time article was in response to an interview by Ed Rampell with Rob Berman from Acacia. The Berman interview can be read online at: Acacia's Rob Berman: The Carrot and Stick Shtick. Additional coverage and interviews may be found through our article search box at www.klixxx.com.
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