Patent Troll
Version 1.0.0 · Updated 2026-07-30
CORE DEFINITION
An entity that does not produce products itself, but acquires a large number of patents specifically to sue other companies for infringement to obtain compensation or settlement fees. They exploit the cost asymmetry of the legal system for rent-seeking.
SCAFFOLDING EFFECT
Reduce cognitive load
Identify legitimate disruptors. In business and institutional design, one must be wary of actors who do not create value but only exploit rule loopholes for 'toll collection'. This also reminds innovators that mere technological leadership is not enough; they must build a defensive patent pool (nuclear arsenal) to deter trolls.
Anchor fast decisions
An entity that does not engage in production but specializes in acquiring patents to sue others for profit, exploiting the asymmetry of litigation costs, revealing arbitrage loopholes in the property rights system.
MINIMUM ACTION
In progress 0/1Practice this model in one real situation:
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Source support: Explicit
- en.wikipedia.orghttps://en.wikipedia.org/wiki/Patent_trollverified
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