It is an excellent and fortunate definition. If all you do is hold patents, sue people and companies, and do not make anything or sell goods or services, you're a patent troll. And that's exactly the label that should be slapped on this company.
Hopefully we can get all entities that fit the definition of a patent troll abolished. Also fortunately it's inevitable that the patent troll business will be destroyed. It will be made so difficult and unprofitable, few will attempt it. It's merely a matter of how long it takes and much economic damage is caused by the trolls first.
So you believe that independent inventors and universities are causing great economic damage? Why?
In my mind, the people who are doing damage are those who are taking advantage of the fact that defending oneself against a patent infringement suit is expensive, by suing small businesses with little or no regard to whether they actually infringe; and those taking advantage of low-quality patents that should never have been issued, like the infamous scan-to-email patent.
I think that by equating trolls with NPEs, you are losing an important distinction between the ones doing this damage and entities with valid patents that took real R&D to develop, and who are enforcing them against actual infringers. I don't know how you can say that the latter group don't deserve to be able to enforce their patent rights, unless you want to discard the entire patent system.
In any case I don't think your proposal is going to fly. In contrast, we almost had a bill pass Congress to limit the worst abuses. I still don't understand why this failed.
So we shouldn't be thinking about trolls / not trolls, but just how to rapidly identify and throw out trivial patents and prior art. The fact that you can patent most of these things in the first place is crazy; you didn't do 'real R&D' on these. You just had someone with patent knowledge identify as much patents as possible in a grand collection of things which might well have taken real R&D to come up with. But then you should be forced to patent the whole of things, not every trivial part in it. The infringers / trolls are the ones who sue over trivial stuff which a 4 year old can think up while sitting on the toilet. And that's what most of these are. And most of the others (and a lot of these) are prior art. Making it sound official doesn't change that. What is left might well be the result of real and costly R&D and should be (if it's not software imho) protected for a few years so the investment can be earned back.
Hopefully we can get all entities that fit the definition of a patent troll abolished. Also fortunately it's inevitable that the patent troll business will be destroyed. It will be made so difficult and unprofitable, few will attempt it. It's merely a matter of how long it takes and much economic damage is caused by the trolls first.