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

Biird Launches Partner Appreciation Campaign

Biird has launched a campaign to provide gifts to staff members of its retail partners across Europe and North America throughout September.

Xgen Names Blanca Estrada-Gonzalez as Latin America Account Representative

Xgen Products has named Blanca Estrada-Gonzalez as its new Latin America account representative.

ERIKALUST Releases 'Dancing on My Own'

Tula Vida stars with Julia Roca in the latest release from ERIKALUST, titled “Dancing on My Own.”

Miss Teela Toplines Latest Volume of Angelo Godshack's 'Hardcore Gangbangs'

Miss Teela headlines the eighth volume of director Angelo Godshack's "Hardcore Gangbangs," from Evil Angel.

Male Power Expands 'So Comfy' Collection

Male Power has expanded its So Comfy collection of men's underwear.

Hazel Moore, Elizabeth Skylar Topline Latest 'Student Teacher Relations' From Sweetheart Video

Hazel Moore and Elizabeth Skylar headline the third volume of “Student Teacher Relations” from Mile High Media studio imprint Sweetheart Video.

Cheerleader Kait Stars in Latest From Elegant Angel

Cheerleader Kait stars with reigning and three-time XMAs Male Performer of the Year Vince Karter in the latest release from Elegant Angel, titled “You Want It Deeper?”

Orion Expands 'Cuties' Vibe Collection

Orion Wholesale has introduced four new devices from its Cuties vibrator collection.

Rachel Rampage Makes Her Jules Jordan Debut

Rachel Rampage has made her debut for Jules Jordan Video alongside Manuel Ferrara.

Zoey Uso, Demi Hawks & Skylar Snow Front Latest From Girlsway

Zoey Uso, Demi Hawks, and Skylar Snow star in the latest Girlsway release, titled “Perky and Perfect.”

Show More