Non-practicing entities (NPE), sometimes called “patent trolls,” act very much like their legendary namesakes. Like trolls of ancient Norse legend — and the modern-day Internet variety — they are “seldom helpful or friendly,” and instead leech off the good efforts of others.
An NPE holds a patent for a product or process but has no intentions of developing it. NPEs acquire patents, sometimes in mass quantities, identify companies that could be infringing on them, and bring legal action to generate a settlement.
Patent trolls aren't just individual patent holders. They can also be universities or research organizations lacking the resources to further develop something they originally designed or created. The biggest offenders amass large numbers of patents with the intent to sue companies and individuals they claim have illegally used some element of something for which they hold the patent.
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