Patent Troll

Patent Troll

A patent troll, sometimes referred to as a non-practicing entity (NPE), is an individual or company that actively sues businesses violating patents as a primary means of making money. Patent trolls own the patents they claim others are violating, but have no real intention of using those patents to create products or services.

What is a patent troll?

A patent troll is an individual or company that actively files and holds patents or acquires patents from other businesses with the intent to sue others for violating their intellectual property. They don’t plan on using the patents to bring products to market or make improvements to existing products and processes. They simply use them as a way to justify suing other businesses and individuals to make money.

Patent trolls effectively capitalize on loopholes in the patent law system that allow them to file a patent for a piece of intellectual property without ever intending to bring it to life. Some purchase patents from other patent holders in dire financial situations, and others purchase broad patents in the hopes that someone will end up violating the patent with their own invention at a later date.

These trolls file patent infringement lawsuits and sue competitors for alleged damages, which can cost other businesses thousands of dollars.

Patent troll FAQs

Is patent trolling legal?

Patent trolling is illegal. However, catching patent trolls isn’t always easy since, on the surface, it can look like they’re just enforcing a patent they applied for.

How do you respond to a patent troll?

If you’re dealing with a patent troll, the best thing you can do is work with an intellectual property attorney or an experienced patent attorney. They’ll be able to represent your interests and can argue your case in court if the troll pursues a lawsuit.

How do patent trolls make money?

Patent trolls earn money by filing lawsuits against businesses that they claim are violating their intellectual property rights. Often, they target small to medium-sized businesses that may not have the resources to fight the lawsuit in court and that may be more willing to settle for a steep fee.

Are patent trolls still a problem?

Unfortunately, yes. Though the government is cracking down on patent trolls, companies still use these tactics to get money from businesses and individuals when they can. If someone files patent infringement claims against you or your business, seek legal advice as soon as possible.