Non-Practicing Entity (NPE)

A Non-Practicing Entity (NPE) is a company or organization that owns patents but does not manufacture products or offer services related to those patents. Instead, NPEs often focus on licensing their patents to other businesses or enforcing their patent rights through litigation. This practice can lead to controversies, as some view NPEs as opportunistic entities that profit from patents without contributing to innovation or industry. In essence, NPEs act more like investment firms for patents rather than traditional companies that produce goods or services.