What is a NPE? A NPE stands for Non-practicing entity, or more commonly known as patent trolls. NPE's are a highly controversial topic, both in their practice and their contribution to society. NPE's are defined as entities that earn or plan to earn a majority of their revenue from licensing or enforcement of its patents. As you can imagine, this business model has had serious implications on companies who's products rely heavily on innovation, both from themselves and 3rd parties. As NPE's do not sell products themselves, they are immune to counter-assertion from whichever company they accuse, one of the main settlers in patent disputes. For a company, a lawsuit from a NPE can be extremely costly and stressful, where they must decide between either succumbing to the NPE's allegations and fines, are engaging in a long costly legal dispute.
NPE's can take many different forms. Some companies are choose to license their patents to others with more knowledge and resources to better monetize their advancements. Others instead prefer to sell the patent outright, and avoid the legal hassle of royalties. Many NPE's are given a bad reputation due to the all publicity regarding patent trolls. However many NPE's are engaged in very legitimate business; companies who are unable to capitalize on their research and prefer to sell it. This is a important factor to keep in mind when evaluating NPE's in the workforce.
I like your in depth description about non-practicing entities! I learned a lot from your analysis. Great work!
ReplyDeleteHi Chris,
ReplyDeleteGreat post! I like how you prefaced your other posts about NPEs with the definition and overview of what they are. Next time, it may be helpful to use one consistent font throughout your writing!
You do a great job of accurately explaining what NPEs are. I especially liked that at the end you mentioned that NPEs are legitimate businesses. While I think they are often times in the ethical wrong, I agree with you on that!
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