Non-Practicing Entities (Patent Trolls)

Non-Practicing Entities (NPEs), commonly called patent trolls, are organizations that acquire patents not to produce products or services but primarily to license them or pursue legal action against companies they believe are infringing. Their main goal is to generate revenue through licensing fees or legal settlements, rather than through innovative activity. Critics argue that they can hinder innovation and competition by using patents as leverage rather than for protecting genuine inventions. NPEs are a controversial aspect of the patent system, raising concerns about their impact on the industry and the ethics of patent enforcement.