A while ago, I wrote about patent trolls and wondered about the viability of intellectual property, in the form of patents, as a liquid, tradeable, securitized asset class. I also mentioned Nathan Myhrvold’s Intellectual Ventures as one outfit that could drive patents toward an elevated asset class status. In a recent TechCrunch post about Myhrvold, it appears he’s gone a long way in pushing patents to become more liquid and tradeable. In summary, Intellectual Ventures has systematically acquired a patent portfolio of over 20,000 patents. In the eight years since …

Technology industry heavyweights are banding together to form a new group called the Allied Security Trust. Members include Google (GOOG), Cisco Systems (CSCO) and Hewlett-Packard (HPQ). This alliance will buy up patents in the marketplace to preempt “patent trolls” from acquiring these patents in order to extract royalties from Allied Security Trust members.
Patents are notoriously difficult to value but it is clear that patents are becoming a viable asset class in themselves. Taking the cue from many other asset classes, could there be a way to “securitize” a portfolio of …