Google Acquires Almost 1,000 Patents from IBM

Unfortunately, businesses have decided to us patents as a form of offense in their battle against competitors, especially in the technology realm, where hundreds of billions of dollars are at stake.

In response to those new realities, Google (NASDAQ:GOOG) and other companies have went on patent buying sprees as a defensive measure against these strategies.

According to documents filed with the U.S. Patent and Trademark Office, Google has acquired approximately 1,000 patents from IBM for an undisclosed amount.

The patents include those that have already been issued and those pending.

Patent acquisitions will continue to be a big business over the next several years as companies jockey for position in the changing business climate.

Interestingly, among the patents Google acquired were those totally unrelated to its business model and products, implying IBM may have made them part of the terms of acquiring the patents related to the business.

Another possibility and probability, is Google could have them in their arsenal to go on the offensive in unrelated market segments as a means of generating another revenue stream.

Yet another possibility is to use those patents to counterbalance a possible suit from a company over their technology, which Google could then respond by countering with a suit of their own with what appears to be patents irrelevant to Google.

More than likely it'll be a combination of the above.

In the early part of July, Google entered into an auction against Apple and others to acquire the approximate 6,000 patents from Nortel. Google lost out in that auction to a group of companies, which included Apple.

Nortel was a Canadian company which went bankrupt and was forced to sell its formidable patent portfolio, which sold for $4.5 billion.

Google has also recently acquired patents from Motorola and Verizon (NYSE:VZ).

Concerns are the use of patents to target companies will stifle competition, but in the view of Google and others, the best way to combat that is to garner a significant patent portfolio as a defensive measure against it.