Patent Suit Targets Companies Using Tokens as Micropayments

WASHINGTON — Playboy Enterprises Inc. and 29 mainstream companies are embroiled in patent infringement litigation over online technology involving the use of electronic tokens and related software programs to make the tokens function as micropayments.

The suit, waged earlier this year, should be closely watched in the online adult industry because, in the case of Playboy, the claims directly target its pay-by-minute video-on-demand products. (Since the suit was filed Playboy has licensed out its online business.)

Some of the other companies in the suit have been hit with charges of infringing on the intellectual property via mobile payments, as well as e-gift cards.

The 30 defendant companies are alleged to have infringed on two related patents: U.S. Patent Nos. 7,177,838 and 7,376,621.

Both patents are similar in nature and are described to function as a "method and apparatus for conducting electronic commerce transactions using electronic tokens."

Besides Playboy, other companies named in the suit filed by patent holding company Abridge Technology include Metro PCS Communications Inc., Mopay Inc., NCSoft Corp., Nexus Payment Systems, P.F. Chang's China Bistro Inc., Perfect World Entertainment Inc., Pex Card, Plastyc Inc., Precash Inc., Prepaid Technologies LLC, Ready Financial Group, Regions Financial Corp. , Southwest Airlines Co., Staples Inc., SVM LP, Toys R Us Inc., USA Paycard Inc., Wells Fargo & Co., AccountNow Inc., Arroweye Solutions Inc., BB&T Corp., Boku Inc., Cashstar Inc., Compass Bancshares Inc., Doctor's Associates Inc. (Subway), Echovox Inc., Facebook Inc., IMVU Inc. and J.C. Penney Co.

The 30-defendant suit has been filed at U.S. District Court in Marshall, Texas.

The federal court in Marshall is a popular one for patent lawsuits.Attorneys say that quick trials and plaintiff-friendly juries are the big draw there. So are the Texas-sized verdicts sometimes handed to winners.

Patent cases are heard faster in Marshall than in many other courts, forcing some defendants to buckle under the pressure of time when trying to sort out complex infringement cases.

And while only about five percent make it to trial in Marshall, patent holders win 78 percent of the time, compared with an average of 59 percent nationwide, according to LegalMetric, a company that tracks patent litigation.

Related:  

Copyright © 2025 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

Missouri AG Bypasses Legislature, Declares Age Verification Rule

Missouri Attorney General Andrew Bailey on Wednesday announced a new state regulation requiring adult sites to implement age verification of users, bypassing the legislative process in a strategy not seen before in state-level efforts to mandate age verification.

VerifyMy, ID X Lab Partner for 'AnonymAGE' Verification Solution

Safety technology provider VerifyMy and digital trust specialist ID x Lab have partnered for an age verification solution called AnonymAGE.

Attorney Corey D. Silverstein Launches 'Q&A Series' on Social Media

Adult industry attorney Corey D. Silverstein has launched a Q&A series on his social media platforms.

Pineapple Support Marks 7th Anniversary

Pineapple Support is marking its seventh anniversary by citing its accomplishments and noting its challenges.

'Over the Top' North Carolina Bill Could Play Havoc With Adult Sites

A bill filed in the North Carolina state Assembly on Monday would impose new rules that industry observers warn could push adult websites and platforms to ban most adult creators and content.

Swedish Government Proposes Ban on Purchasing 'Remote' Sexual Services

The Swedish government has asked the country’s Parliament to amend Swedish law so that current laws against purchasing sexual services would also apply to acts performed remotely by cammers, streamers and custom content creators.

PASS Announces New Membership Program for All Adult Industry Workers

PASS has announced a new membership program for all sectors of the adult industry.

Jewelz Blu, Stripchat to Host XSIV Magazine Launch Party

2025 XMAs winner Jewelz Blu will host an invite-only launch party for the Music issue of XSIV Magazine at Stripchat XSIV House on April 19.

Ofcom: Age Assurance Going Live Across 'Thousands' of Porn Sites

U.K. communications regulator Ofcom said in a statement Thursday that providers of online pornography are implementing age assurance across “thousands of sites” accessible in the U.K., in response to Ofcom’s Online Safety Act (OSA) enforcement program.

ASGMax Debuts 'Roleplay' AI Chat Feature

Alpha Studio Group (ASG) has introduced the ASGmax Roleplay AI chat feature.

Show More