A more thorough explanation:

Definition: A patent that is obtained for a specific aspect of an invention that the inventor does not intend to produce, but wants to prevent competitors from using in making improvements. The inventor makes a claim that only serves to protect other claims, thereby "fencing in" any competing improvements. Courts generally disfavor fencing claims.

Example: Company A invents a new type of car engine that is more fuel-efficient than any other engine on the market. Company A obtains a patent for the engine design, but also obtains a dominating patent for a specific aspect of the engine that they do not intend to produce. This dominating patent prevents competitors from making improvements to the engine design without obtaining a license from Company A.

Explanation: In this example, Company A obtains a dominating patent to prevent competitors from making improvements to their engine design. By obtaining this patent, Company A can maintain their competitive advantage in the market. However, courts generally disfavor fencing claims because they do not promote innovation and can stifle competition.