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

Creator of Hentaied, Parasited Launches New Site 'MonsterPorn'

Romero Mr. Alien, the creator of Parasited and Hentaied, has launched new paysite MonsterPorn.com.

House of Lords Approves UK Plan to Outlaw 'Choking' Content

The House of Lords, the U.K.’s upper house of Parliament, has agreed to amendments to the pending Crime and Policing Bill that would make depicting “choking” in pornography illegal and designate it a “priority offense” under the Online Safety Act.

Indiana Sues Aylo Over AV, Calls IP Address Blocking 'Insufficient'

Indiana Attorney General Todd Rokita has filed a lawsuit against Aylo, alleging that the company and its affiliates have violated both Indiana’s age verification law and the state’s Deceptive Consumer Sales Act.

Liz Jordan on Creative Confidence and Earning Her Vixen Angel Wings

On the first day of COVID lockdowns, Liz Jordan got temporarily laid off from her job at Pressed Juicery. While waiting to get called back to work, she decided to launch a casual side hustle.

Leilani Li Stars in New Scene From Black-TGirls

Leilani Li stars in a new solo scene for Black-TGirls, titled “I Heart Leilani Li.”

Ana Foxxx, Kimmy Kimm Front Latest From Girlsway

Multi-XMAs winner Ana Foxxx and Kimmy Kimm star in the latest Girlsway release, titled “A Quickie Divorce.”

Suki Sin Leads Latest From TeamSkeet

Suki Sin stars with Nikki Nicole and Juan Largo in a new scene for TeamSkeet’s “Shoplyfter” series.

House Committee Amends, Advances Federal AV Bill

A U.S. House of Representatives subcommittee voted Thursday to amend the SCREEN Act, which would make site-based age verification of users seeking to access adult content federal law, and to advance the bill for review by the full Committee on Energy and Commerce.

Icon Debuts New 'Expandor' Dildo From Its 'AlienNation' Line

Icon Brands has introduced the inflatable Expandor dildo from its AlienNation collection.

New AI Companion Platform 'SinfulXAI' Launches

SinfulXAI, a new AI companion platform, has officially launched.

Show More