June 4, 2004

For-Profit College's Deal With Company That Claims Patent May Set a Precedent

By SCOTT CARLSON

A major for-profit distance-education company has signed a licensing deal with the Acacia Research Corporation, which claims to own patents that cover all online audio- and video-streaming technologies. Officials at Acacia would not disclose the terms of the deal, but noted that institutions on average would pay $5,000 a year.

Acacia has been sending notices of patent infringement to scores of colleges, asking them to pay Acacia 2 percent of the

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