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Easy.

1) Do they perform original research themselves, or do they purchase patent rights? If they're not actually generating knowledge, then they're rent-seeking.

2) Do they generate income from licenses, or from lawsuits? Licensing IP is a voluntary transaction for both parties, so the people using the IP believe they're paying a fair cost for it. Lawsuits seek to extract maximum payoff through coercive means, usually because the free-market value of their IP would be vanishingly small.



Hm. Thanks!

I'll give you 1, but I'm not sure about 2. I guess if there's a pattern of lawsuits over licensing, but isn't a lawsuit what you resort to if someone uses your patented process without licensing?


What if a company who does research wants to sell its patent rights? Assuming patents are legitimate, that should be possible. Just as composers who sell rights to their songs.




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