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

Aleksa Mink Stars in Latest From Reality Kings

Aleksa Mink stars with Kaby Snow in the latest release from Reality Kings, titled "Pitch My Tent."

FSC Hails Members, Allies in SCREEN Act Victory

The Free Speech Coalition (FSC) released a statement today praising its members and allies after a successful lobbying effort to prevent the SCREEN Act, a nationwide age verification bill, from advancing out of the Commerce Committee for a full vote on the Senate floor.

Harlie Hotwife Makes Her TeamSkeet Debut Alongside Maria May

Harlie Hotwife has made her TeamSkeet debut alongside Maria May, Mike Ox, and AustanT in the latest installment of "Mom Swap," from studio imprint Swappz.

Lovehoney Group Resolves Patent Disputes With Maia Toys, CalExotics, Doc Johnson

Lovehoney Group announced in a statement that it has settled patent disputes with Maia Toys, CalExotics and Doc Johnson Enterprises regarding products protected by the company’s intellectual property rights.

Mia Macana Makes Her Adult Time Debut

Mia Macana has made her Adult Time debut alongside Cami Strella in the latest scene from studio imprint Transfixed, titled “Tonight's Not A Total Bust...”

SCREEN Act Stalls in Senate Committee Over Technicality

The Senate Commerce Committee on Wednesday voted to approve the SCREEN Act, which would mandate nationwide site-based age verification of users seeking to access adult content online, but a procedural issue blocked the bill from advancing to the full Senate.

Lovense Debuts Upgraded 'Gush 2' Motion Sensing Masturbator

Lovense has introduced an updated version of its Gush 2 male masturbator, which now includes motion-sensing control capability.

DarkFans Adds Time-Limited Content Pricing

DarkFans has debuted its Configure Limits feature for automating content promotions.

Clips4Sale, Free Speech Coalition Partner for 'Creator Workflow' Webinar

Clips4Sale (C4S) and Free Speech Coalition (FSC) have partnered for a webinar titled “Organization & Workflow: Simple Systems for Busy Creators.”

Show More