Acacia Wins Judgment Against Yahoo

LOS ANGELES — Acacia Research Corporation has won a $6.6 million judgment against search giant Yahoo for infringing on a patent governing online advertising using background images.

The case, heard in the Eastern District of Texas by a federal jury, ruled that Yahoo's instant messenger program infringes on Acacia's patent.

The "background advertising system," United States Patent 6205432, is "An advertisement system and method […] for inserting into an end user communication message a background reference to an advertisement."

The patent covers graphics used for advertising, which even though they are not "clickable," are used as background images in emails, web pages and other online media.

"Although we are disappointed with the verdict, we firmly believe in the merits of our case, and we are considering our options going forward, including whether to appeal," stated a Yahoo spokesperson.

Acacia is no stranger to the online adult business community, having received licensing agreements for streaming media technology from several industry players and vehement opposition from others.

"My quick read of the patent is that the inventor has created the idea that when viewing an email or web page, that an advertisement is displayed in the background," explained Brandon "Fight the Patent" Shalton. "The advertisement isn't clickable since it's a background image, but exists there for marketing/branding purposes."

"The ability to insert background images in email and web pages is part of the HTML specifications," Shalton said. "The inventor/Acacia is claiming that if that image is an 'advertisement,' then it's covered under this patent that was filed in late 1998."

"It would be interesting to read the court transcripts to see how Yahoo! defended themselves with prior art, which did not satisfy the jury," Shalton added.

According to some observers, the case may pose implications for adult website operators and others using images that contain marketing messages — such as the popular "skins" that some companies use as advertisements on industry message boards.

"It would appear that anything deemed to be 'advertising' that shows up in the background would be covered by these patent claims," Shalton concluded.

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

German High Court Puts Pornhub, YouPorn 'Network Ban' on Hold

A German high court on Friday temporarily barred a state media regulator from ordering internet providers to cut off access to Aylo-owned adult sites Pornhub and YouPorn in Germany, pending further action by Cypriot and European Union authorities.

Luxembourg Media Regulator Fines LiveJasmin for AV Noncompliance

The Luxembourg Independent Audiovisual Authority (ALIA) has levied a fine of 25,000 euros (approximately $28,000) against webcam platform LiveJasmin for failing to comply with provisions of the country’s Electronic Media Law.

AdultHTML Introduces Subscription Option for Website Owners

AdultHTML has added a subscription option for its web development service, allowing site owners to pay a monthly fee for access to developers and tools.

French Parliament Rejects Ban on Purchase of 'Remote' Sexual Services

The French National Assembly has backed off from a proposal to criminalize the purchase, and/or facilitation by online platforms, of sexual services performed remotely by streamers and custom content creators.

2027 XBIZ Exec Awards Pre-Nominations Period Opens

XBIZ is pleased to announce that the pre-nomination period for the 2027 XBIZ Exec Awards, the adult industry’s preeminent career honors, begins Wednesday and runs through Oct. 14.

Takedown Piracy Reports Infiltration, Monitoring of Mega.nz

Takedown Piracy has reported that it successfully infiltrated Mega.nz folders and identified and removed nearly two million instances of stolen content.

Pornhub Unblocks Australia Users on iOS Devices, Citing Apple AV Effectiveness

Pornhub parent company Aylo on Tuesday announced that users in Australia will once again be able to access the popular site if they are using Apple devices and have confirmed their age through Apple’s Australian age-verification process.

California Governor Signs Bill Limiting CIPA Claims

Governor Gavin Newsom has signed into law a bill to narrow the scope of the California Invasion of Privacy Act (CIPA), to prevent abusive lawsuits targeting online businesses, including adult websites.

California Enacts Stricter UGC Rules for Adult Sites

Governor Gavin Newsom has signed into law a bill to impose tighter compliance standards for user-generated content (UGC) on adult websites accessible in California.

Minister: UK Aims to Begin Enforcing 'Choking' Ban Before Year's End

The U.K. will soon begin enforcement of a new law criminalizing depictions of “non-fatal strangulation” in adult content, according to a Ministry of Justice official.

Show More