Patent Assertion Entities (PAEs) are companies whose business model is to acquire patents and assert them against companies that sell products. By one estimate, PAEs are responsible for 87% of US high-tech patent litigation. Operating companies spend billions each year litigating and settling with such companies. This is particularly frustrating to operating companies because they can’t use their patents in response,
and this expenditure is not being put towards research and development, improved
manufacturing, new products, or returned to investors.