Trolls are commonly known in cartoons and video games for their hostility towards humans. “Patent trolls” refer to patent assertion entities that strategically exploit patent rights, affecting the progress of companies they target. They are non-practicing entities (NPEs) that acquire patents and then legally enforce them against large companies, with the sole goal of making profits. They are usually not counter-sued by the target companies since they are not making any commercial use of the acquired patents themselves. Unlike typical patent holders, trolls do not use their patents to create products or ideas; rather, they generate revenue solely through their enforcement actions. Patent trolls should not be confused to be the same as NPEs and they are just one type of NPE. Other types of NPEs are research institutes and universities, who conduct their own research (unlike patent trolls) and then focus on licensing or selling the patents developed out of that research. 

Trolls, however, must not be taken to be completely negative entities. Experts believe that despite their negative aspects, they also have a positive role. For instance, they help establish a secondary market for inventors to profit from their patents and give inventors opportunities to make money. They also expose our patent system’s biggest vulnerabilities. Despite attempts to paint them as a total hazard, research from Stanford suggests that patent trolls play a role in making the market function and ensuring inventors receive fair compensation. 

Let us look at the various techniques employed by patent trolls, before examining some of the positive and negative impacts of trolls in greater detail.