From a lot of what I've read about different NPEs, it sounds like they're already on the cusp of being vulnerable to racketeering / fraud charges. It might not take that much to amend the existing laws to add some language about shell companies and patents that clarifies that this is illegal.
Another thing that could help a lot is minimizing the extent to which patents can be sold. One of the biggest problems with the patent system that I see is that someone can invent something that sounds worthless, sell the patent for $10,000, and then the company that buys the patent can rake in millions in royalties. In general no one should be making money hand over fist for things that they neither invented nor produce.
I agree with you on the first point, but completely disagree on the second. If the patent is valid to begin with, it doesn't really matter who owns it. It's true that a crap patent owned by a deep-pocketed litigant can be more dangerous than the same patent owned by a poor inventor. But the problem is the crap patent, not the deep pockets.
I really think it does matter who owns it. If most of the profit from patents is the result of speculation, I think the system is fundamentally failing to do the job of rewarding innovators. It doesn't matter if the patent is a good one - if it's primarily rewarding hedge fund managers with no interest in research, the incentives are screwed up.
Another thing that could help a lot is minimizing the extent to which patents can be sold. One of the biggest problems with the patent system that I see is that someone can invent something that sounds worthless, sell the patent for $10,000, and then the company that buys the patent can rake in millions in royalties. In general no one should be making money hand over fist for things that they neither invented nor produce.