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

Amalia Davis, Leya Desantis Star in Latest From SexArt

Amalia Davis and Leya Desantis star in the latest release from MetArt studio brand SexArt, titled "My Treasure."

Magic Silk Expands 'Love' Line

Magic Silk has introduced six new styles from its Love line of lingerie.

XBIZ Virtual Pleasure Products Trade Show Set for July 28-30

To facilitate global business between brands and buyers without the need for travel, XBIZ is pleased to reintroduce a virtual edition of its pleasure products events, set for July 28-30.

Orion Debuts New Styles From 'Svenjoyment' Line

Orion Wholesale has released two new styles from its Svenjoyment undergarment line.

Ondato Joins Pineapple Support as Sponsor

Age and identity verification company Ondato has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

Jewelz Blu Stars in Latest Gangbang From Ricky's Room

Jewelz Blu stars in a new gangbang scene from Ricky's Room, titled “Every Hole Is The Goal.”

Alexis Fawx, Armani Black Make Their Bellesa Plus Debuts

Armani Black and multi-XMAs winner Alexis Fawx have made their Bellesa Plus debuts alongside John Legendary in the latest episode of the studio’s “Blind Date” series.

Blush, 'Drag House Rules' Partner for Pride Month

Blush has been named an official challenge sponsor for OUTtv’s “Drag House Rules” during Pride Month.

DomCon LA Cracks the Whip on Community and Kink Education

As DomCon attendees packed up their paddles and checked out of the LAX Hilton following a long weekend of play parties, classes, and high-impact reunions with old friends, it was easy to tell who was there for the 23rd year of LA’s premier BDSM gathering and who was a business traveler from Cleveland who happened to be in the weird place at the right time.

Reptyle to Debut MYLF's 1st Serialized Release 'Motherfucker'

Reptyle will premiere MYLF’s first serialized release, “Motherfucker,” starting Friday.

Show More