What is a Patent Troll?

A patent troll, also referred to as a non-practicing entity (NPE), is a person or company that acquires patents, often from struggling or bankrupt organizations, not with the intent to use the patents but to extract financial gain. This is typically done by demanding licensing fees from those accused of infringing on the patent.

The term “patent troll” is often used in a negative context to describe entities that exploit the patent system by using lawsuits or the threat of litigation to earn money, rather than developing or utilizing the patented technology. These entities do not manufacture or sell products based on the patents they own, but instead profit by leveraging legal claims for financial gain, sometimes to hinder competition or force settlements.