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

Lick Goods Expands Massage Oils Collection

Sexual wellness brand Lick Goods has introduced two new flavored massage oils.

Nia Bleu Fronts Latest From New Sensations

Nia Bleu stars with Damon Dice in the latest release from New Sensations.

Kitana Collins Makes Her WIFEY Debut

Kitana Collins has made her debut for Vixen Media Group studio imprint WIFEY alongside her husband, Tyson, and Anton Harden.

FSC Launches 'Know Your Rights' 1st Amendment Resource Page

The Free Speech Coalition (FSC) has launched "Know Your Rights," a resource page detailing First Amendment protest guidelines.

Orion Expands 'Bad Kitty' Line

Orion Wholesale has added six new restraint sets to its Bad Kitty collection of fetish accessories.

BeYourLover Debuts 'Guitar' 2-in-1 Vibe

Pleasure brand BeYourLover has introduced its Guitar two-in-one vibrator and suction device.

Utah VPN Rule for Adult Sites Takes Effect This Week

A new law in Utah comes into force Wednesday, making adult websites liable if minors in the state circumvent geolocation efforts to bypass age verification.

Lilly Bell Takes Center Stage in May Issue of X3 Magazine

Multi-XMAs award-winner Lilly Bell captures the cover spotlight in the May issue of X3 magazine, the premier publication revealing the real personalities, passions and stories behind top stars.

Le Wand 'Dive' Featured in InStyle's List of Recommended Sex Toys

Le Wand’s Dive submersible wand vibrator is featured in “The 7 Best Sex Toys Sexperts Want You to Stash In Your Nightstand” roundup from InStyle.

Show More