Patent market dynamics: In view of the business model of non-practicing entities

Jack Cheng, Tony Lan*, Shang-Jyh Liu

*Corresponding author for this work

Research output: Contribution to journalArticle

3 Scopus citations


The emergence of Non-Practicing Entities (“NPEs”) influences patent market dynamics. Based on a database of NPE activities from 1996 to 2010, this paper attempts to investigate these influences in view of NPEs' heterogeneity. We found NPEs with prominent R&D involvements can integrate knowledge from the innovation and patent markets, and might therefore generate valuable patents and facilitate effective technology transfer. Hence, when compared with NPEs without any R&D involvement, R&D-performing NPEs appeared able to monetize their patents without resorting to excessive litigation. Thus, different NPEs could exert different influences and drive patent market dynamics in their own respective ways.

Original languageEnglish
Pages (from-to)61-76
Number of pages16
JournalWorld Patent Information
StatePublished - 1 Mar 2017


  • Knowledge integration
  • NPE
  • Non-practicing entities
  • Patent market
  • Patent troll
  • Technology transfer

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