From the traditional perspective,patent non-practicing entities(NPEs)are mainly caused by loopholes in the intellectual property system.They grab unreasonably high profits through excessive litigations and abuse of injunctive reliefs,which will have negative effects such as hindering innovation,damaging consumers'interests and destroying market order.But in fact,the emergence of NPEs is closely related to networked open innovation.NPEs are the products of the development of the secondary market of intellectual property rights and the specialized division of labor.Their dominant position in licensing negotiation largely comes from the change of patent licensing mode from ex ante transactions to ex post transactions.At the same time,NPEs in turn promote networked open innovation.They can promote the flow of technologies,reduce the search costs for enterprises to acquire technologies,and improve the innovation incentive of small enterprises and individual inventors.Therefore,NPEs have no"original sin",but neutral market subjects.The regulatory approach to NPEs should shift from regulating based on the subject itself to regulating based on abusive behaviors and the source of rights.
networked open innovationnon-practicing entitypatent assertion entitystandard essential patentinjunction
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