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{{#section:The Truth Behind Patent Trolls are an innovation bogeymen. |trolls}}Patent trolls have yet to be clearly defined Numerous research articles and legislation have been focused on ways to curb troll activity, making patent trolls one of the most publicly denounced issues in the patent system. Experts dispute terms for such corporations, labeling them as either Patent Assertion Entities (PAEs) or Non-Practicing Entities (NPEs). PAEs are defined by the Federal Trade Commission as companies that earn revenue by purchasing patents and accusing companies using those patented technologies of infringement.[https://www.ftc.gov/policy/studies/patent-assertion-entities-pae-study] NPEs are firms that rely on Patent Licensing activities for revenue.

The Judiciary Committee in the House of Representatives has raised concerns regarding the effect of Patent Trolls on small business, startups, and non-tech companies given their lack of resources to defend themselves. As reported by the American Intellectual Property Law Association (AIPILA), the average cost of patent litigation is $650,000 regardless of company size. Approximately 55% of patent lawsuits filed by patent trolls are against businesses earning less than $10 million. The Judiciary Committee also reports that 40% of [[Small Business Research| small businesses] targeted by Patent Trolls suffer from significant business setbacks requiring changes in strategy, shut-downs, a decrease in valuation or slows in growth. <ref name="patenttrollsbob" />