1. Money

Patent Trolls

By

Definition: The term patent trolls is not a legal term.

Patent trolls is a derogatory phrase for an entity that neither invents nor makes products but instead acquires patents and uses them to extort money from legitimate businesses by suing or threatening to sue.

According to Westlaw, patent trolls are companies that engage in the business of acquiring patents in order to sue operating companies for infringement. Patent trolls are not in the business of research and development, patent trolls are not inventors and they are certainly not innovative. Patent trolls are simply in the business of buying patents they feel could make them money as a result of patent litigation.

Also Known As: patent pirate, non-practicing entity (NPE), non-manufacturing patentee, patent marketer, patent licensing company, patent dealer

©2014 About.com. All rights reserved.