Platform wars: software patents in a new light

I recently wrote about the $4.5 billion auction for Nortel's portfolio of 6,000 patents that went to a consortium that included Apple, Microsoft, and RIM (Blackberry) -- three of four smartphone platforms. In the wake of this sale, Interdigital has contemplated monetizing its portfolio of 8,500 patents, perhaps even putting the company up for sale.

Google announced that it has bought over 1,000 patents from IBM for defensive purposes. Perennial investor Carl Icahn suggested that Motorola cash in on some of its immense portfolio of 18000 patents. Analysts have noted that Kodak's patents may be worth more than Kodak itself.

The value of these patents is not in the technology. These prices are being paid for the power to block others from using technology they have developed independently. Or for the power to block others from blocking you by threatening to block them from using their technology -- "assertion" and "counter-assertion."...