Patent Assertion Entities

Patent Assertion Entities (PAEs), often referred to as "patent trolls," are companies that acquire patents with the primary goal of enforcing them against other businesses, rather than developing products or services. They typically do not manufacture anything themselves; instead, they monitor industries for potential patent infringements and may file lawsuits to seek licensing fees or settlements. While some PAEs argue that they protect intellectual property rights, critics claim they hinder innovation and burden companies with costly legal battles. Thus, their role in the economy is often debated among inventors, businesses, and policymakers.