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

Irish Parliamentary Committee Weighs Stricter AV Laws

The Irish national parliament’s Joint Committee on Arts, Media, Communications, Culture and Sport met Wednesday to discuss regulation of online platforms and improving online safety, including calls for stricter age verification by adult sites.

Ofcom Issues Guidance on Age Check Placement for Adult Sites

U.K. media regulator Ofcom on Wednesday published its recommendations for where and how adult sites should deploy age checks as required for compliance with the Online Safety Act.

Tubes Booster Launches Web Hosting Solutions

Content hosting platform Tubes Booster has launched two new hosting solutions.

Anna Claire Clouds Leads Dorcel's 'Fusion'

Reigning XMAs Female Performer of the Year Anna Claire Clouds headlines the latest release from Dorcel, titled “Fusion.”

Elise London Makes Her Elegant Angel Debut

Elise London has made her debut for Elegant Angel in a new release titled “Raunchy Redhead Anal.”

X3 All-Stars Party Heats Up Hollywood Thursday Night

The X3 All-Stars Party, sponsored by Adult Time and Fleshlight, will take place Thursday, Jan. 15, in Hollywood as the official kickoff to X3 Expo.

Naughty America Launches AR Video Format

Naughty America has launched "Shows," a new AR video format, on its Real Girls Now platform.

Alexis James Makes Her Kink.com Debut

Alexis James has made her Kink.com debut alongside Vince Karter in "Three Hole Domination."

Eris Jolie, Leah Hayes Front Latest From TransAngels

Eris Jolie and Leah Hayes star with Baxxx in the latest release from TransAngels, titled “Varsity Vixens.”

Olivia Del Rio Returns to Dorcel for 'PL4Y Vol. 2'

Olivia Del Rio stars in the new Dorcel title “PL4Y Vol. 2.”

Show More