New IP Company Offers Protection Racket.

I am one of those cynics, that does not believe in defensive patents as a strategy, nor do I consider trolling an illegitimate business activity, but rather, see IP buyers and licensers as facilitating the best use of IP, in keeping with Coase’s economic models.

Certainly the specific Research in Motion case regarding the Blackberry was an instance where RIM had every opportunity to pay licensing fees to the patentees, and the company that bought up the patents and sued RIM were conducting legitimate business.

We note that Ocean Moto have announced another IP Auction – indicative that like other forms of property, patents are being bought and sold, which is generally a good thing. 

We’ve discovered another business model.  RPX buys patents and licenses to members, thereby preventing them from being sued for infringement.

See: http://bits.blogs.nytimes.com/2009/03/30/trolling-for-patents-to-fight-patent-trolls/

This seems to be some sort of protection racket! It’s a bit like King David asking Nabal for food and victuals since his band of outlaws was protecting Nabal from marauders.

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