LES Nouvelles – June 2025
The term “non-practicing entities” (NPEs) describes entities that own patents and whose principal activity is licensing them. NPEs do not manufacture patented products; instead, they derive economic value through intellectual property (IP) sales, licensing, or other monetization activity. In recent years, the term NPE has often been associated with the derogatory term “patent troll.” However, focusing only on a few bad actors in the IP monetization ecosystem is a disingenuous mistake.
While there are some bad actors, as there are in every industry, the vast majority of monetization is based on entirely desirable activity that helps to fuel further innovation.
This article seeks to put an emphasis on virtuous NPEs, which the author labels “patent elves,” and the benefits they bring to innovation markets.