Patent Trolls and Schumpeter's Creative Destruction

8 Pages Posted: 15 Apr 2014

See all articles by Karol Śledzik

Karol Śledzik

University of Gdańsk - Faculty of Management

Date Written: April 14, 2014


There is no doubt that intellectual property should be protected because it is particularly vulnerable to "stealing". However, under the law for some time this "protection" is used to make profit by "Not Practicing Entities" - (the NPE's) also called Patent Trolls. Activity of Patent Trolls companies can significantly contribute to inhibit the diffusion process in the knowledge based economy. As Schumpeter recognized the concept of dynamic capitalism was doomed to fail, because the increased efficiency of the capitalist enterprise would lead to monopolistic structures and loss of the idea of entrepreneurship. Today we may risk statement that over-regulation in the field of patent protection in conjunction with the unfair practices of companies Patent Trolls may lead to stop the development of Knowledge Based Economy. The purpose of this article is to describe the abuse of intellectual property rights protection for companies that are "Non-Practicing Entities" (Patent Trolls) in the light of J.A. Schumpeter’s creative destruction concept.

Keywords: Patent Trolls, NPE's, Non-Pefrorming Entitie, creative destruction, innovation.

JEL Classification: P12, O49, O34

Suggested Citation

Śledzik, Karol, Patent Trolls and Schumpeter's Creative Destruction (April 14, 2014). Available at SSRN: or

Karol Śledzik (Contact Author)

University of Gdańsk - Faculty of Management ( email )

ul. Armii Krajowej 101, 81-824
ul. Bażyńskiego 1A,
Gdańsk, 80-952

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