In Jeff Robert’s piece on GigaOm, he talks to Neil Wilkof, a veteran IP lawyer about whether the current run on buying up patent portfolios is a market distortion and whether the bubble is likely to burst soon.
Clearly Wilkof agrees with many (but not all) experts that the inflating prices on IP portfolios does not necessarily add value to the purchasing companies and potentially distracts them from their core mission of innovating and selling creative, exciting, and profitable products and services.
There are growing signs that the value of portfolios may be in for a correction, as well. The recent sale of Kodak’s patent portfolio brought in only a fraction of the $2.6 Billion the Kodak had sought for it.
While it is still too early to call this the bursting of a bubble, there are caution flags starting to pop up on the horizon and companies need to be cautious, lest they get fall victim an overheated and overhyped market for IP portfolios.