March 17, 2010 by Fiona Li
Fiona Li is a J.D. candidate at Osgoode Hall and is taking the Patent Law course.
A non-practicing entity (NPE) is a patent owner that does not manufacture or use the patented invention. NPEs are commonly referred to as patent trolls. More specifically, patent trolls buy patents cheaply from entities not actively seeking to enforce them. The trolls, in turn, make money by aggressively enforcing claims against other companies who may be infringing on the patent despite having no intention of using it themselves.