CrakRevenue Wins Appeal in 'Virtual Affiliate' Patent Fight

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  • Niktamer
    Lord of the Leads
    • May 2005
    • 3021

    #1

    News CrakRevenue Wins Appeal in 'Virtual Affiliate' Patent Fight

    It?s a big day for us. We fought for something we believed in, although a settlement would have certainly been less costly than litigation, we couldn?t let patent trolls continue to bully us and others in our industry. We can now focus on the goal we set four years ago: centralize all the industry?s top offers with the CrakRevenue network

    This is good news for the affiliate marketing industry because it means Essociate cannot assert its claim against other networks. The court?s holding is also good news for the affiliate marketing industry because it makes it far less likely that other parties will attempt to assert similarly unfounded patent infringement claims.



    On Friday, March 11, 2016, the US Federal Circuit unanimously affirmed U.S. District Judge James V. Selna?s ruling confirming the unpatentability and invalidity of Essociate?s patent.

    Last February, the parent company of CrakRevenue won the first round of a hard-fought patent battle filed by Essociate, Inc. Essociate claimed the company was infringing on their patent, U.S. Patent No. 6,804,660.
    Their patent described a method and system for configuring an existing affiliate network to receive ?virtual affiliates? from an affiliate pooling network. Essociate has used its patent to sue more than 20 companies in the affiliate networking space for infringing on the ?660 patent.

    Essociate sued CrakRevenue?s affiliate program in April 2014 in the United States District Court for the Central District of California. Essociate alleged willful patent infringement and asked to be awarded damages, lost profits, attorney fees, and a permanent injunction.

    But unlike many other companies, Nicolas Chrétien ? Founder & President of CrakRevenue ? chose not to settle. In January 2015, after months of litigation, he obtained an order from the District Court striking all of Essociate?s infringement contentions. The parent company of CrakRevenue then teamed up with Clickbooth.com, which had also been sued, to challenge the validity of the Essociate patent. The District Court granted the CPA network motion, declaring Essociate?s patent claims invalid.

    A year ago, this was a significant case for companies accused of infringing on patents that try to monopolize on abstract ideas on common Internet business practices when Essociate made an appeal of the judgment.

    The US Federal Circuit?s decision settles this judicial battle once and for all, sending a loud and clear message.

    Parent Company of CrakRevenue Wins Appeal in Patent Fight Against Essociate | CrakRevenue

    CrakRevenue Wins Appeal in 'Virtual Affiliate' Patent Fight - XBIZ.com

    Crakmedia Wins Appeal in Patent Fight Against Essociate -- QUEBEC CITY, March 15, 2016
  • fuzebox
    making it rain
    • Oct 2003
    • 22377

    #2
    Much respect

    Comment

    • C H R I S
      Too lazy to set a custom title
      • Nov 2005
      • 10842

      #3
      Congrats on the win!
      C H R I S
      Retired Porn Veteran

      BH4L

      Comment

      • #23
        So Fucking Banned
        • Jan 2016
        • 555

        #4
        Congrats Guys!

        Comment

        • robwod
          Confirmed User
          • Nov 2005
          • 2540

          #5
          Congrats Nik. This was an import fight for many affiliate networks, whether they realize it or not. Nice win, albeit an expensive one. Patent trolls are little more than a hindrance to progress.
          NSFW

          Comment

          • j3rkules
            VIP
            • Jul 2013
            • 22101

            #6
            Congratulations for the win.

            Comment

            • CaptainHowdy
              Too lazy to set a custom title
              • Dec 2004
              • 94189

              #7
              Congradulations ...

              Comment

              • Horatio Caine
                full-time aspiring rapper
                • Aug 2012
                • 5746

                #8
                Congrats guys.
                Who are these patent trolls?

                Comment

                • candyflip
                  Carpe Visio
                  • Jul 2002
                  • 43074

                  #9
                  Originally posted by Horatio Caine
                  Congrats guys.
                  Who are these patent trolls?
                  GFY Bros. HuntingMoon. XPays. They even have their own forum here.

                  Spend you some brain.
                  Email Me

                  Comment

                  • poncabare
                    Confirmed User
                    • Jul 2007
                    • 2552

                    #10
                    good stuff right there

                    Comment

                    • ITraffic
                      Confirmed User
                      • Jul 2013
                      • 2725

                      #11
                      AVN - XPays Awarded Affiliate-Pooling Technology Patent

                      Comment

                      • JFK
                        FUBAR the ORIGINATOR
                        • Jan 2002
                        • 67369

                        #12
                        Congrats

                        FUBAR Webmasters - The FUBAR Times - FUBAR Webmasters Mobile - FUBARTV.XXX
                        For promo opps contact jfk at fubarwebmasters dot com

                        Comment

                        • Niktamer
                          Lord of the Leads
                          • May 2005
                          • 3021

                          #13
                          AVN - Appeals Court: Essociate?s ?660 Patent Invalid; CrakMedia Victorious

                          Comment

                          • The Porn Nerd
                            Living The Dream
                            • Jun 2009
                            • 19806

                            #14
                            Nice work Crak!!
                            My Affiliate Programs:
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                            Comment

                            • ErectMedia
                              Confirmed Chicago Pimp
                              • Aug 2004
                              • 7100

                              #15
                              Congrats

                              Comment

                              • MichaelP
                                Registered User
                                • Aug 2003
                                • 7123

                                #16
                                Congrats guys

                                Comment

                                • Niktamer
                                  Lord of the Leads
                                  • May 2005
                                  • 3021

                                  #17
                                  28 minute of pure joy - The Appeal Hearing audio

                                  http://oralarguments.cafc.uscourts.g...=2015-1332.mp3

                                  And here the a transcript of the best parts.

                                  Fed. Circ. Skeptical Of Arguments To Restore Web Patent
                                  Share us on: By Michael Macagnone

                                  Law360, Washington (March 9, 2016, 10:09 PM ET) -- Federal Circuit judges Wednesday grilled the inventor of a web referral patent nixed under the Supreme Court's Alice decision about whether any aspect of the system could satisfy the high court's standard that patents cannot be granted to abstract concepts.

                                  Federal Circuit Judge Todd M. Hughes led the questioning on whether to overturn U.S. District Judge James V. Selna’s February 2015 ruling that Essociate Inc. had claimed an abstract idea with its e-commerce patent that allowed online merchants to track user traffic from sites that weren’t part of their affiliate system.

                                  Judge Hughes said that given the abstract nature of referral systems, which allow web sites to determine advertisement rates based on how much traffic the ads generate in getting users to follow links to the vendor’s own site, Essociate’s patent would have to demonstrate further improvements to the ideas to receive patent protection.

                                  “The referral system is abstract; it is unpatentable,” Judge Hughes said. “In improving an abstract idea, you still haven’t convinced me you have improved in a way sufficient to be patentable.”

                                  Essociate had launched patent infringement suits against Clickbooth.com Inc. in 2013 and Crakmedia in 2014, and the two defendants moved for judgments on the pleadings. That resulted in U.S. District Judge James V. Selna’s summary judgment of patent invalidity and the current appeal.

                                  The patent simply covered the abstract idea of keeping track of which customers come from various referrers, Selna ruled.

                                  “Regardless of whether a merchant is seeking customers on or off the Internet, it is a fundamental economic practice to keep track of who is directing customers to one’s business, and compensate or provide incentives to that referring source to ensure the continuing flow of customers from that source,” Judge Selna wrote.

                                  But Essociate counsel Derek Newman said Wednesday the patent doesn’t deal with those sorts of abstract concepts. He said the patent allows for easing the previously complicated process of getting the referral system up and running, a problem inherent to the Internet.

                                  “The gist of the patent is access. The gist of the patent is not the abstract idea of tracking and receiving a referral,” he said.

                                  Judge Hughes took issue with that description, however, saying, “You’re talking about this [access] as if the claims actually say this,” while he pointing to the described steps in the patent, which detail the handling of referrals.

                                  Clickbooth.com pushed even further, saying Essociate’s claimed invention only reorganized the economic relationship between vendor and website so Essociate could insert itself as a middleman. Darren Franklin, counsel for Clickbooth.com, said it was “really a system that takes over the bookkeeping from the broker’s computer and moves it to the Essociate’s computer.”

                                  Franklin said the supposed “access” provided by Essociate's patent is just putting bookkeeping for a referral program on a computer.

                                  “‘Access’ is just the flip side of receiving and tracking referrals, and Essociate’s patent is directed to the tracking and receiving of referrals,” Franklin said.

                                  The U.S. Supreme Court rendered its decision that abstract concepts could not be patented in Alice Corp. v. CLS Bank International in June 2014.

                                  The patent-at-issue is U.S. Patent Number 6,804,660.

                                  Federal Circuit Judges Jimmie V. Reyna, Evan J. Wallach and Todd M. Hughes sat on the panel.

                                  Essociate is represented by Derek Alan Newman, Derek Linke and Keith P. Scully of Newman Du Wors LLP.

                                  Appellee Clickbooth.com is represented by Darren Matthew Franklin and Andrew T. Kim of Shepard Mullin Richter & Hampton LLP and Richard Newman of Hinch Newman.

                                  Appellee 4355768 Canada Inc., also known as Crakmedia, is represented by Ben M. Davidson and William G. Jenks.

                                  The case is Essociate, Inc. v. Clickbooth.com, LLC, case number is 15-1332, in the United States Court of Appeals for the Federal Circuit.

                                  Comment

                                  • candyflip
                                    Carpe Visio
                                    • Jul 2002
                                    • 43074

                                    #18
                                    Congrats to the winners (lawyers)!

                                    Spend you some brain.
                                    Email Me

                                    Comment

                                    • st0ned
                                      Confirmed User
                                      • Mar 2007
                                      • 8437

                                      #19
                                      This is awesome news!
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                                      Comment

                                      • $tandaman
                                        Pimping 8EZ
                                        • Jun 2001
                                        • 3530

                                        #20
                                        Great news! Congratulations Nick! now let's get to work!
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                                        Comment

                                        • darnit
                                          Confirmed User
                                          • Jul 2001
                                          • 2439

                                          #21
                                          Great news. Congrats Crak.

                                          Comment

                                          • dig420
                                            Confirmed User
                                            • May 2001
                                            • 9240

                                            #22
                                            Originally posted by darnit
                                            Great news. Congrats Crak.
                                            You're still here? How's things?

                                            Comment

                                            • Barry-xlovecam
                                              It's 42
                                              • Jun 2010
                                              • 18083

                                              #23
                                              A patent has to be a unique idea and a new process.
                                              1. Counting on a abacus or a computer there is no difference -- counting is counting.
                                              2. You cannot patent selling either -- it is a commonly used method of commerce.
                                              3. You cannot patent brokering sales either -- brokering is not unique or a new process.


                                              The patent should never been granted.
                                              Too bad you had to spend all that money on the legal challenge and I hope you were awarded your costs in damage compensation

                                              Comment

                                              • VenzuelanChick
                                                Confirmed User
                                                • Nov 2010
                                                • 916

                                                #24
                                                Great news, Congrats!!!!!



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                                                Comment

                                                • sandman!
                                                  Icq: 14420613
                                                  • Mar 2001
                                                  • 15427

                                                  #25
                                                  Need WebHosting ? Email me for some great deals [email protected]

                                                  Comment

                                                  • bns666
                                                    Confirmed Fetishist
                                                    • Mar 2005
                                                    • 11549

                                                    #26
                                                    congrats
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                                                    Comment

                                                    • Ross
                                                      Ik ben een aap
                                                      • Sep 2002
                                                      • 18874

                                                      #27
                                                      Congrats Nik, great win and kudos for fighting it out.

                                                      Comment

                                                      • Google Expert
                                                        Webmaster
                                                        • Jun 2004
                                                        • 14294

                                                        #28
                                                        kind of ironic

                                                        Comment

                                                        • Kenny B!
                                                          Confirmed Abuser
                                                          • Jun 2003
                                                          • 5719

                                                          #29
                                                          Much respect for taking this the distance. Hopefully this will cost Evan and Michael a shit ton in lost revenue in the future, patent trolls are scum.
                                                          Kenny -at- YourPaysitePartner.com
                                                          Skype: kennyb514

                                                          Do business with us:
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                                                          Comment

                                                          • Markul
                                                            Likes Pie
                                                            • Dec 2007
                                                            • 12407

                                                            #30
                                                            This is awesome. Gratz
                                                            But.... I pulled out...

                                                            Comment

                                                            • SAMANTAmax
                                                              TieMeUp
                                                              • Jul 2008
                                                              • 7037

                                                              #31
                                                              Congrats Crakrevenue!!
                                                              1million $ in a Month

                                                              Comment

                                                              • Itchy
                                                                Datetronix.com
                                                                • Jan 2001
                                                                • 6525

                                                                #32
                                                                Sweet win Congrats!!


                                                                ICQ: 2588560
                                                                Skype: Pornocop

                                                                Comment

                                                                • Kenny B!
                                                                  Confirmed Abuser
                                                                  • Jun 2003
                                                                  • 5719

                                                                  #33
                                                                  If you check out the interview Evan did on Domain Sherpa back in 2011 he claims he made over a million a year from enforcing his patent and licensing fees.

                                                                  Hopefully those paying can use your win to their advantage.

                                                                  Again big props to Crak!
                                                                  Kenny -at- YourPaysitePartner.com
                                                                  Skype: kennyb514

                                                                  Do business with us:
                                                                  Your Paysite Partner
                                                                  Kenny's Pennies
                                                                  Sticky Dollars
                                                                  Radical Cash
                                                                  Indie Bucks
                                                                  Stand Ahead


                                                                  Read My Ambush Interview Here

                                                                  Comment

                                                                  • johnnyloadproductions
                                                                    Account Shutdown
                                                                    • Oct 2008
                                                                    • 3611

                                                                    #34
                                                                    Originally posted by Kenny B!
                                                                    If you check out the interview Evan did on Domain Sherpa back in 2011
                                                                    My gaydar is going off, is he a cock sucker?

                                                                    Comment

                                                                    • Kenny B!
                                                                      Confirmed Abuser
                                                                      • Jun 2003
                                                                      • 5719

                                                                      #35
                                                                      Originally posted by johnnyloadproductions
                                                                      My gaydar is going off, is he a cock sucker?
                                                                      Does it make you gay if you only fuck other in the ass?
                                                                      Kenny -at- YourPaysitePartner.com
                                                                      Skype: kennyb514

                                                                      Do business with us:
                                                                      Your Paysite Partner
                                                                      Kenny's Pennies
                                                                      Sticky Dollars
                                                                      Radical Cash
                                                                      Indie Bucks
                                                                      Stand Ahead


                                                                      Read My Ambush Interview Here

                                                                      Comment

                                                                      • johnnyloadproductions
                                                                        Account Shutdown
                                                                        • Oct 2008
                                                                        • 3611

                                                                        #36
                                                                        Originally posted by Kenny B!
                                                                        Does it make you gay if you only fuck other in the ass?
                                                                        A hole is a hole is a hole.

                                                                        I don't have anything against gays, or jews (you are one after all )

                                                                        Comment

                                                                        • darnit
                                                                          Confirmed User
                                                                          • Jul 2001
                                                                          • 2439

                                                                          #37
                                                                          Originally posted by dig420
                                                                          You're still here? How's things?
                                                                          Hey dig, I'm around occasionally I'm good thanks. How's things on your end. PM me for my contact info if you want to catch up.

                                                                          Comment

                                                                          • ReggieDurango
                                                                            Confirmed User
                                                                            • Nov 2007
                                                                            • 4784

                                                                            #38
                                                                            Fuck yeah! Congrats, Nik and Crak!

                                                                            Comment

                                                                            • Major (Tom)
                                                                              So Fucking Banned
                                                                              • Nov 2003
                                                                              • 32492

                                                                              #39
                                                                              Wasn't he the Heb who used to sue everyone for anything?

                                                                              Comment

                                                                              • Niktamer
                                                                                Lord of the Leads
                                                                                • May 2005
                                                                                • 3021

                                                                                #40
                                                                                Originally posted by DukeSkywalker
                                                                                Wasn't he the Heb who used to sue everyone for anything?

                                                                                Yes they did sued and settled with a lot of people and great compagnies , some even claim they got Azoogle out of business.

                                                                                https://dockets.justia.com/search?query=Essociate+Inc


                                                                                Thanks everyone for the good words, this is really appreciated as this was an immense source of stress, lost of focus as, it was very time consuming and as you can imagine immense legal fee's.

                                                                                Comment

                                                                                • Tjeezers
                                                                                  Webmaster
                                                                                  • Mar 2007
                                                                                  • 16605

                                                                                  #41
                                                                                  well done!
                                                                                  www.Tjeezers.cam

                                                                                  Comment

                                                                                  • Sednub997
                                                                                    Naked in my bathroom
                                                                                    • Dec 2008
                                                                                    • 6175

                                                                                    #42
                                                                                    Sounds like a great news.congrats



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                                                                                    • Mr.Fiction
                                                                                      Confirmed User
                                                                                      • Feb 2002
                                                                                      • 9484

                                                                                      #43
                                                                                      Good work!
                                                                                      Don't be lazy, protect free speech: ACLU | Free Speech Coalition | EFF | IMPA

                                                                                      Comment

                                                                                      • SekobA
                                                                                        Too lazy to set a custom title
                                                                                        • Oct 2008
                                                                                        • 12154

                                                                                        #44
                                                                                        CrakRevenue numero uno

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