Definition
A patent troll, more formally a non-practicing entity, is a party that acquires patents primarily to assert them against others for licensing fees or settlements rather than to produce goods.
Why It Matters Legally
Patent trolls drive a large share of infringement suits and impose significant costs on operating companies. Understanding how to respond to troll demands is an important defensive consideration.
Example Use Case
A company receives a demand letter from an entity that makes no products but owns a broad patent and seeks a settlement to avoid litigation.
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Related Terms
Non-Practicing Entity, Patent Assertion Entity, Patent Litigation, Demand Letter, Licensing