Nonpracticing Entities, or NPEs for short, have come under a great deal of criticism lately. Commonly known as “patent trolls,” these are entities that do not manufacture anything but simply sue companies for patent infringement. They have been compared to the “modern day mafia.” President Obama has referred to them as “extortionists.” Congress is seriously considering amending the Patent Act to stop patent-troll lawsuits.
However, lost in the name-calling and rush to judgment is whether so-called patent trolls actually deserve this criticism — and what exactly is a patent troll anyway?
