What is non-practicing entity (NPE)? - Definition from WhatIs.com

Definition

non-practicing entity (NPE)

Part of the Business terms glossary:

A non-practicing entity (NPE) is someone who holds a patent for a product or process but has no intentions of developing it. 

A patent is a government-issued license that gives an inventor exclusive rights to the manufacture, use or sale of his invention for a specified time period. An NPE does none of those things.

A patent troll is one type of non-practicing entity. Patent trolls amass large numbers of patents with the intention of launching patent infringement suits against companies and individuals that they maintain have illegally used some element of something for which they hold the patent. In the United States, the Federal Trade Commission (FTC) uses the term patent assertion entities (PAEs) to distinguish patent trolls from non-practicing entities that have different motives.

Other types of non-practicing entities include universities and other research organizations and individual inventors lacking the resources to further develop something they have designed or created. 


 

This was last updated in October 2013
Contributor(s): Ivy Wigmore
Posted by: Margaret Rouse

Related Terms

Definitions

  • Respect for People principle

    - Continuous Improvement (CI) and Respect for People are the two foundational principles of the Toyota Way, the company's business management guide. (WhatIs.com)

  • Parkinson's law of triviality (bikeshedding)

    - Parkinson's law of triviality is an observation that people tend to waste a lot of time attending to unimportant details while crucial matters don't get the attention they require. (WhatIs.com)

  • Parkinson's law

    - Cyril Northcote Parkinson observed that "work expands so as to fill the time available for its completion" in a 1955 essay published in "The Economist" based on his experience in the British Civil ... (WhatIs.com)

Glossaries

  • Business terms

    - Terms related to business, including definitions about project management and words and phrases about human resources, finance and vertical industries.

  • Internet applications

    - This WhatIs.com glossary contains terms related to Internet applications, including definitions about Software as a Service (SaaS) delivery models and words and phrases about web sites, e-commerce ...

Ask a Question About non-practicing entity (NPE)Powered by ITKnowledgeExchange.com

Get answers from your peers on your most technical challenges

Tech TalkComment

Share
Comments

    Results

    Contribute to the conversation

    All fields are required. Comments will appear at the bottom of the article.