patent troll


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patent troll

An organization that uses its patents to generate revenue without manufacturing the products that the patents pertain to. The patents are often purchased from a third party, which may be bankrupt or no longer interested in bringing the product to market.

Also called a "non-practicing entity" (NPE) or "patent assertion entity" (PAE), which are less denigrating, the patent troll looks for infringers that have invested heavily in the product and often has to threaten them with or actually instigate a lawsuit in order to obtain licensing revenues. Companies that are involved in the business that the patent covers may indeed sue others for patent infringement, but that does not make them a patent troll. A patent troll is a holding company that buys patents based on their potential profitability if enforced. See Internet troll.
References in periodicals archive ?
Google likes a strong patent system," says LaBarre, who explains that the PPP, in part, stems from the idea that "Because there is a considerable amount of perceived deal friction with smaller entities doing patent deals with larger entities, perhaps this is why smaller entities so often end up going and working with patent trolls.
Wikipedia, for example, conflates patent trolls, non-practicing entities (NPEs) and patent assertion entities (PAEs), defining them collectively as "person or company who enforces patent rights against accused infringers in an attempt to collect licensing fees, but does not manufacture products or supply services based upon the patents in question, thus engaging in economic rent-seeking.
On February 20, 2014, the White House announced a new set of initiatives that are aimed at curbing claims brought by patent trolls.
However, patent trolls are a much larger problem in the USA than elsewhere because of the unique features of the USA patent litigation system, which enable them to conduct 'patent hold-ups' without risk of costs if they lose.
The patent troll knows it's irrelevant to LevelUp, but knows the imbalance of costs -- that for us to pay them $150,000 to go away is much cheaper than paying $1.
To deal with patent trolls, that advice is as relevant today as it was in the eighteenth century.
Usually regarded as history's first patent troll, George B.
Keywords: nonpracticing entities (NPE), patent trolls, holdup, license agreements, royalty rate, overcompensation
defendant in a lawsuit brought by a patent troll is $20.
By that time, the patent troll has usually gotten the recipient's attention.
For years, our largest clients have sought a way to insure against the threat of spikes in litigation costs and potentially damaging patent troll lawsuits," said Shawn Ram, Executive Managing Director of Crystal and Company.