non-practicing entities

A non-practicing entity (NPE), often called a patent troll, is a company that owns patents but does not produce products or services. Instead, it seeks to profit by enforcing its patents against other companies, typically through licensing fees or legal claims. NPEs often acquire patents to leverage them for income, rather than to develop new inventions. While some assert legal rights to protect innovations, critics argue that NPEs can hinder innovation by asserting broad or questionable patents, sometimes leading to costly legal battles for patent holders and businesses.