The act of throwing one's legal weight around to deliberately stifle innovation so one can be the only one who can charge license fees for an obvious invention. The RIAA, MPAA, ESA, and Microsoft are supporters of intellectual terrorism. So called because the cease & desist letters and infringement lawsuits instill terror.
"The Dump" video game ROM site was a victim of intellectual terrorism.
Charging someone twice for one usable copy of Windows XP because they lost the install disk and their hard drive crashed is an example of intellectual terrorism.