Earlier quoted context omitted.
Unlike copyrights, patents don't have an invariable lifetime: they have to be renewed, usually for an increasing fee. In the US, the schedule of maintenance fees is: (A) Three years and 6 months after grant, $980. (B) Seven years and 6 months after grant, $2,480. (C) Eleven years and 6 months after grant, $4,110. This allows patents that are not being profitably exploited to lapse early.
> This allows patents that are not being profitably exploited to lapse early It also allows larger companies to sit back, and wait out small inventors to "give up" on a patent (due to it becoming too expensive to renew) that they are trying to sell to these same companies. You might ask, though, why would somebody invent something that they didn't then market and manufacture themselves? Well - it happens, more often…
This does not seem realistic. If you can't afford the $900 to renew a patent after 3 years, you likely can't afford to produce the patented device either.
Further, your example doesn't hold water. If I'm (an executive at) Toyota, and someone offers to license or sell outright a patent for $X, I stand to make $ZX if I agree to it, or $0 for 20 years if I don't.
So either $ZX isn't enough profit to move my needle, or I flat out just don't care about the product. Either way, I have no interest in pursuing it. It's not about "saving money:" even in the most old-school of industries, I can't imagine that waiting 20 years for an unrealized patent to expire makes any sense if it would be profitable to license it.
It's far more likely that either (a) the patent isn't particularly useful or (b) the owner is asking too high a license fee.