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Websites Watch Video Patent Fight

by Glen Shapiro, LawAndTax-News.com, New York

11 February 2004

Website owners around the world are watching with increasing interest the progress of a patent infringement case over video- and audio-streaming technology.

Technology firm, Acacia Research has taken legal action against several online pornographers over their use of patented video delivery technology owned by Acacia.

However, if the California court rules in the high-tech firm's favour, there could be far-reaching implications for all websites which provide audio and video content over the internet.

Speaking to USA Today, E. Michael Goldberg, CEO of the New Destiny Internet Group, which provides video streaming to adult web sites, warned of the possible consequences of a pro-Acacia ruling for cable and satellite providers, and for firms which provide streaming media services, such as RealNetworks and America Online:

"It's online taxation without representation," he observed, adding: "It would have a chilling effect."

A decision in the case is not expected for several months.

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