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

Kiiroo Debuts 'Julio' Interactive Thrusting Dildo

Kiiroo has introduced Julio, its first interactive thrusting dildo vibrator.

LoveStore Mexico, Our Erotic Journey Sign Distro Deal

Our Erotic Journey has signed a deal with LoveStore Mexico to carry the pleasure brand's products for distribution to Mexican retailers.

2027 XBIZ Exec Awards Pre-Nominations Period Opens

XBIZ is pleased to announce that the pre-nomination period for the 2027 XBIZ Exec Awards, the adult industry’s preeminent career honors, begins Wednesday and runs through Oct. 14.

Takedown Piracy Reports Infiltration, Monitoring of 'Mega.nz' Pirated Content

Takedown Piracy has reported that the organization has successfully infiltrated Mega.nz folders and identified and removed thousands of instances of stolen content.

Suki Sin Leads Latest From MYLF

Suki Sin stars with Troy Francisco in the latest release from the MYLF series "MYLF Singles."

Sophia Locke, Rachael Cavalli Star in Latest From Girlsway

Reigning XMAs MILF Performer of the Year Sophia Locke stars with Rachael Cavalli in the latest release from Girlsway, titled "The Next Chapter of Our Lives."

Penny Barber Stars in Latest From Family Strokes

Penny Barber stars with Rion King and Anthony Pierce in the latest release from Family Strokes.

Motorbunny 'Buck' Appears in 3D Adult Video Game 'LoveCraft'

The 3D adult video game LoveCraft, in partnership with Motorbunny, has created a virtual version of its Motorbunny Buck vibrating saddle for use in the Steam platform game.

Pornhub Unblocks Australia Users on iOS Devices, Citing Apple AV Effectiveness

Pornhub parent company Aylo on Tuesday announced that users in Australia will once again be able to access the popular site if they are using Apple devices and have confirmed their age through Apple’s Australian age-verification process.

Blush Debuts 'Amelia' Dual-Sided Wand

Blush has introduced Amelia, its new dual-sided wand vibrator, offering both G-spot and clitoral stimulation.

Show More