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 © 2026 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

Silvia Saige. Leana Lovings Star in Latest From Bellesa Plus

Silvia Saige and Leana Lovings star with Nathan Bronson in the latest release from Bellesa Plus, titled "Under Her Influence."

Blake Lovely, Esme Rogue Star in Latest From TGirls.porn

Blake Lovely and Esme Rogue star in the latest release from Grooby paysite TGirls.Porn, titled "The Great Outdoors."

Svakom, Kaotik Labs Return as Presenting Sponsor of XBIZ Awards, Pleasure and Retail Edition

The pleasure industry’s biggest night is set to shine even brighter as Svakom and sister brand Kaotik Labs return as presenting sponsors of the 2027 XBIZ Awards, Pleasure & Retail Edition, taking place at Avalon Hollywood on Jan. 9.

AEBN Reveals Ariel Demure as Top Trans Star for Q3 of 2026

AEBN has named its top trans stars for the third quarter of 2026, with Ariel Demure landing atop the leaderboard.

Electric Novelties Debuts 20 New 'Blue Line' Chastity Styles

Electric Novelties has introduced 20 new Blue Line chastity styles.

Porn Piracy: How AI Is Transforming Content Theft and Protection

Gone are the days when the word “pirate” primarily conjured images of clever scoundrels like Captain Jack Sparrow, swaggering across the high seas in search of gold and jewels. Today’s most prolific pirates operate in the darkest corners of the internet, armed with bots, scrapers and generative AI.

Private Drops Latest Volume of 'Flight Attendants Fuck Better'

Private has released the second volume of "Flight Attendants Fuck Better," directed by Xavi Rocka.

Erika Lust Talks Parenting, Personal Growth and the Power of Porn at LA Book Launch

Acclaimed director and producer Erika Lust, founder of the Barcelona-based studio that bears her name, brought her new book “Lust: Pleasure, Performance, Power” to a packed Dynasty Typewriter theater in Los Angeles Tuesday night for a spirited reading.

Playhaus Network Launches Podcast Platform Through PAYSITE

Entertainment website The Playhaus Network is launching its new podcast platform through PAYSITE.

Jesse Pony, Alexa Chains Headline Latest 'Hookup Hotshot: Internet Sex Addicts'

Jesse Pony and Alexa Chains topline the 13th volume of director Ryan Gozzling's "Hookup Hotshot: Internet Sex Addicts" for Evil Angel.

Show More