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

Lauren Phillips, Derek Kage Cap AEBN's Top 100 Stars of 2025

AEBN has revealed its top 100-selling stars of 2025 in both gay and straight theaters.

Starship Introduces New Wellness, Pleasure Product Lines

Starship has debuted its new On My Mind lubricant line and Devil Got Bound bondage collection.

The Game to Bring West Coast Fire to X3 Expo Grand Finale

Multi-platinum West Coast rapper The Game will close out X3 Expo grand finale, presented by Chaturbate, with a high-octane live performance at the Hollywood Palladium on Saturday, Jan. 17, delivering a finale built on swagger, legacy and raw LA energy.

Anna Bella Makes Her Studio Debut in Latest From Immoral

Anna Bella has made her studio debut in the latest release from Immoral Productions, alongside Matt Bird and studio honcho “Porno Dan” Leal.

Eldorado, Paradise Ink US Distro Deal for 'Art of Illumination' Collection

Eldorado Trading has inked an exclusive U.S. distribution deal with Paradise Pleasure Products for the new Art of Illumination collection of pleasure products.

Sliquid Expands Massage Oil Collection

Wellness brand Sliquid has introduced two new scented oils to its Massage collection.

Nexus Debuts 'Ascend' Rotating, Thrusting Massager

Nexus has introduced its new Ascend thrusting and rotating massager.

Lovense Debuts 1st 'AI Companion' Love Doll

Lovense has introduced its first AI Companion Doll at the 2026 Consumer Electronics Show (CES) in Las Vegas.

Danni Jones Returns to Pervz

Danni Jones stars with Ryan Mclane in the latest episode of the Pervz series "ShoplyfterMYLF," titled "Case No. 8004409 — Weren’t You My Tutor?"

Former IEAU Officer Sentenced to 4 Months

Amanda Gullesserian, who performed in the industry under the name Phyllisha Anne and founded the now-defunct International Entertainment Adult Union (IEAU), has been sentenced to four months’ imprisonment for making a false statement in an IEAU federal financial report.

Show More