Study Looks at Patent Trolls' Negative Effects

WASHINGTON — Patent trolls deter innovation by raising costs without making technological contributions, according to a new Federal Trade Commission study released today.

The FTC's 300-page report examines the effect that patent trolls — or as the agency dubs them, "patent assertion entities" — have on competition in the marketplace.

Scores of adult entertainment companies have been hit with complaints in the past few years that have cost their operators millions in legal fees.

Patent holding companies like Acacia, which took on adult operators over the use of so-called digital media transmission patents, and Patent Harbor, which sued 10 adult studios over patents that allow DVDs and Blu-ray discs to organize and skip to chapters and scenes in a menu, are prime examples of trolling on the adult entertainment industry.

In preparing the report, regulators held eight days of hearings, cosponsored a workshop with the Patent and Trademark Office and the Justice Department and received more than 50 written submissions.

“Some applicants may have incentives to draft ambiguous claims that might be viewed narrowly by the PTO and then construed broadly in litigation,” the FTC said.

The FTC suggested that the Patent Office adhere to “an indefiniteness standard that weeds out claims reasonably susceptible to multiple interpretations.”

Also, the FTC recommended establishing undisputed claim term definitions, saying that “litigants disputing claim interpretation may turn to different dictionaries to find a favorable definition.”

The FTC urged the Patent Office “to build a record that improves claim scope clarity” and to “make greater and more informative use of statements of reasons for allowance and for withdrawing indefiniteness rejections.”

Another recommendation was for legislation requiring publication of patent applications 18 months after filing, whether or not the applicant also sought patent protection abroad.

Applications under current law can be kept secret until the patent issues.

The FTC also urged judges to cap royalty damages at an amount a willing licensee would pay by reining in infringement damages by grounding calculations and injunction analysis in “economic principles that recognize competition among patented technologies.”

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

Penthouse Names Liana Love November's 'Pet of the Month'

Penthouse Magazine has named model Liana Love as Pet of the Month for November.

Blake Blossom, Scarlet Skies & Sky Wonderland Star in Blacked Orgy

Blake Blossom, Scarlet Skies, and Sky Wonderland star with Isiah Maxwell, Jax Slayher, and Hollywood Cash in the latest orgy release from Vixen Media Group (VMG) studio imprint Blacked.

Eve Sweet on Turning Sexual Energy Into Crowning Glory

‘I was literally crossing my fingers,” says Eve Sweet, recalling the moment just before her name echoed through the Theater Amsterdam and she walked onstage to be crowned 2025 Euro XMAs Female Performer of the Year. “I was thinking, ‘Please, I worked very hard for this.’”

Orion Debuts 5 New Styles From 'Cottelli Party' Line

Orion Wholesale has expanded its Cottelli Party line with five new styles.

Octavia Red Makes Wicked Debut in 4th Installment of 'Viewer Discretion Advised'

Octavia Red has made her Wicked Pictures debut in the fourth scene from the studio's latest feature, "Viewer Discretion Advised."

OnlyFans Institutes Criminal Background Checks for US Creators

OnlyFans will screen creators in the United States for criminal convictions, CEO Keily Blair has announced in a post on LinkedIn.

Pineapple Support to Host 'Healthier Relationships' Support Group

Pineapple Support is hosting a free online support group on enhancing connection and personal growth.

Kimmy Kimm Lands Cover of Playboy Sweden

Playboy magazine’s Swedish edition has selected Kimmy Kimm as the cover model for its Nov. issue.

Lilly Bell Stars in Latest From Girlsway

Reigning XMAs Girl/Girl Performer of the Year Lilly Bell stars with Blake Blossom in “Roleplay with Me: The Case of the Canceled Party,” from Girlsway.

Madison Morgan Performs 1st Anal, Makes Elegant Angel Debut in 'Big Wet Asses 33'

Madison Morgan performs her first anal scene and makes her Elegant Angel debut in the thirty-third volume of "Big Wet Asses."

Show More