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

  • employee advocacy

    - Employee advocacy is the promotion of an organization by its staff members. A business may ask employees to actively promote the organization, often through social media, as an element of their job... (WhatIs.com)

  • critical success factors

    - Critical success factors are a limited number of key variables or conditions that have a tremendous impact on how successfully and effectively an organization meets its mission or the strategic goa... (SearchCIO.com)

  • unsystemic risk (unsystematic risk)

    - Unsystemic risk (also known as unsystematic risk) is a type of investment risk that is specific to an industry or organization. (SearchCompliance.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.