What is a patent troll?

A complete answer to this question could cover a book chapter, but I will try to resume the essential here.

Of course it’s a troll and it has a patent portfolio. Well, it could do with just one patent, but the important thing here is that it’s a non-practicing entity (NPE). Which means it doesn’t implement the invention, but rather licenses or it just chooses to sue other companies for infringement. You might say “Isn’t that the purpose of the whole patent system – to protect your invention?”  Yes, that’s the purpose of the patent system. But they choose to monetize their patents by letting others do their work for them. Sure, it’s one way of doing things. But it can become annoying to know that there are companies out there who watch every move you make. And once you step (unwillingly I might add) over their protected area, a citation will come your way. This is one point-of-view.

By this broad definition, even Thomas Edison was a patent troll. He made a fortune from patents he never intended to practice. One fun fact is that he invented the electric chair to emphasize the dangers of alternating current electricity.

Furthermore, the Bayh-Dole Act of 1980 (which lets government funded university research to be commercialized) enlarged the circle of patent trolls so as to include universities. This is the rather opposite point-of-view.

The truth, as always, probably resides somewhere in the middle. But usually, one can only side with one party or the other. And just as often, the truth depends on the context. I will expand on this subject (when it’s trolling and it’s not) in a later post.

Latest and greatest patent trolls: Intellectual Ventures and Interval Licensing.