As companies continue to face pressures to maintain (or revitalize) growth rates, a common tactic is to reassess their market focus and seek entry into new markets.  

Whether this growth is organic R&D (build), open innovation (build and buy), or acquisition, including the business perspective of patents and IP rights provides an important strategic lens. The value of this lens is greatest when incorporated early into the process to help guide understandings of a market's dynamics.

First, let's outline the traditional role of IP in the acquisition process of many multi-billion dollar companies: (we will discuss other processes separately)

• We are looking at buying firm X to help establish our next high growth market
• They are a market leader with key customers and strong cash flow
• Does the firm have IP? (Yes, great, let's verify that the fees were paid -- maybe we can get our attorneys to help us review the patents at the last minute too)

Ellen Rosen of Bloomberg Businessweek reported today that Microsoft paid $200 million to settle patent litigation brought by VirnetX Holdings Corporation in February 2007.   VirnetX alleged that Microsoft infringed two VirnetX U.S. patents that covered the Virtual Private Network (VPN) technology contained in Microsoft Windows and Officer Server products.