Patent trolls, which call themselves non-practicing entities (NPE), are companies that acquire patents with no intent to practice the patented technology. Instead, they seek out potential infringers and demand royalties. These entities argue that they perform an efficient service in ensuring that inventors receive a return on their inventive effort. That return, NPE’s contend, increases the incentive to innovate and helps produce a steady stream of new technologies.
The Federal Trade Commission, however, has cited data suggesting that patent trolls’ activity increases the cost of doing business without providing countervailing value. The agency is currently gathering comments and deciding whether to investigate patent-trolling activity.