Definition of a Patent Troll

Patent trolls sometimes search for obscure patents with the intent of suing.

A patent troll is a person or entity that opportunistically or aggressively enforces its patents in court, even though the person or entity has no intention of marketing or even manufacturing the patented invention.

Other Terms

Patent trolls are also known as patent dealers, non-manufacturing patentees, patent marketers, patent pirates and, most commonly, non-practicing entities.

History

The term patent troll was first coined in a 1994 video distributed to corporations. In the video, a patent troll surprised its victims by collecting the revenue from their patent licensing.

How Patent Trolls Operate

Patent trolls frequently purchase patents from bankrupt firms, then sue other companies for patent infringement. The sole focus is on enforcing the patent, with no plans to market the invention behind it.

Defense Against Trolls

Companies use multiple methods of thwarting would-be patent trolls, such as purchasing patent infringement insurance and monitoring new patent applications. In litigation, companies often try to find existing products that make the patent in question invalid.

Allied Security Trust

The Allied Security Trust, comprised of 11 members, is a patent-holding company that protects its members from patent troll lawsuits by purchasing key patents before they fall into the wrong hands.