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.
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References in periodicals archive ?
Patent trolls, also known as patent assertion entities or non-practicing entities, work by acquiring patents to common processes and technological elements-such as scan-to-email functionality on a copier or an ATM's ability to connect to the Internet-then demanding 'licensing fees' and threatening litigation.
(106.) See Andrew Ramonas, Patent Troll Bills Moving Up in Senate and House, CORP.
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."
This has opened the door for the rent-seeking activities of patent trolls, which are typically a non-practicing entity (NPE), which obtains a patent on typically old, broad-based software and computer technologies in the hopes of filing suit later against some entity utilizing the technology (p 8) Trolls typically have no intention of ever operating in the industry.
These days, patent trolls remain a significant risk for startups.
A logical and effective first step is to learn as much as you can about patent trolls by consulting online resources and reaching out to peer companies that have had firsthand experience with NPE assertions.
Despite widespread state action, "patent troll" cases grow.
When the rhetoric observed by Janis shortly before the modern patent reform efforts and the focus on the patent troll is compared to the rhetoric examined in Section II.B, one can see that not much has changed at all.
example, assume that Tazjin, Inc., a hypothetical patent troll, files
How are you different than the patent trolls targeted by policymakers?
The term patent troll stirs up considerable debate.
Their business is extracting licensing royalties by threatening litigation; hence the label, "patent troll."