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

German Court: Regulator Can't Block Entire IG Accounts, Only Posts

A German court has ruled that while a regional media regulatory agency may block specific Instagram posts that include material deemed harmful to minors, it cannot ban an entire Instagram account due to such a post.

Brazil Lays Out Preliminary Guidelines for New AV Requirements

President Luiz Inácio Lula da Silva on Wednesday signed a decree establishing guidelines for new regulations requiring adult websites to age-verify users located in Brazil.

Senate Committee Debates Section 230 Reform

The U.S. Senate Committee on Commerce, Science, and Transportation held a hearing Wednesday on potential changes to Section 230 of the Communications Decency Act, which protects interactive computer services — including adult platforms — from liability for user-generated content.

Samantha Reigns Stars in St. Paddy's Day-Themed Release From TeamSkeet

Samantha Reigns stars with Donnie Rock in a new St. Patrick’s Day-themed scene from TeamSkeet series “Brat Tamer,” titled “St. Patrick's Day Nipple Pinching.”

Pearl Industry Network Offers Free Creator Memberships

Industry trade group Pearl Industry Network (PiN) has launched its free creator membership initiative.

Male Power Debuts Limited-Edition 'Mykonos' Collection

Male Power has introduced its new limited-edition Mykonos collection of men's underwear.

Eldorado to Debut 3 New Brands at Altitude Intimates

Eldorado Trading has inked distribution deals with three new brands and will introduce their respective product lines at the Altitude Intimates Show in Las Vegas, which begins on Sunday.

Adult Time, SX Originals Debut BTS Doc for 'Charlotte Sins: First Gangbang'

Adult Time and SX Originals have released a behind-the-scenes documentary on its scene “Charlotte Sins: First Gangbang.”

Sam Bird Acquires Fanblast

Sam Bird, former co-director of global talent agency Surge, has acquired creator monetization tool Fanblast and named himself CEO.

Dainty Wilder: From Shy Figure Skater to Squirting Superstar

Upon request, Dainty Wilder will enthusiastically perform explicit sex acts for her adoring fans during a livestream — but she does have certain limits.

Show More