Intel (INTC) announced early on Thursday, August 19th, that is purchasing security firm McAfee (MFE) for $7.68 billion in a cash transaction.

This represents a 60% premium to McAfee's closing share price on August 18th and fundamentally changes the information security landscape.

Last week peHUBwire reported on the biggest U.S. IPO of the year, digital whiteboard maker Smart Technologies Inc (SMT).  The Calgary, Alberta-based company sold 38.83 million shares for $17 each raising about $660.11 million.   Pre-IPO shareholders include funds associated with Apax Partners, chipmaker Intel Corp and IFF Holdings Inc.

Patent claims analysis is now in focus issuance of the Bilski opinion by the U.S. Supreme Court.

Looking back a few years, few business executives would think that "patent claims" would be an issue that they read about in the popular press. Thanks to business method patents, the Bilkski case and the ongoing software patent debate, this issue is now front and center as a question for corporate patent counsel.

Unfortunately, few know where to begin planning their reaction to questions about the impact (if any) of this decision and others certain to follow.

UPDATE: $7.7 Billion Update to Patent Perspectives Report (Intel Acquires McAfee)

MIT's Technology Review's July - August issue includes anin-depth briefing on information security. In working with Technology Review, we assessed over 20 companies identified by Technology Review's editors across a spectrum of activities to support this briefing and to provide a supplemental report on key patent drivers and on patent positions in the industry. 

Fresh from a post about the 9-digit VirnetX Microsoft patent litigation settlement by IPVision executive and Sloan School of Management faculty member Joe Hadzima, VirnetX announced that they are moving from microcap status to inclusion in the broader Russell 3000 index. In addition, VirnetX is issuing a special dividend of $.50 per share for shareholders of record on July 1.

The phrase "patent landscape" has become quite popular amongst the patent specialists and patent expert set. Their gravitation to the term is well-founded given the importance of IP rights to corporate success.

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)

Patent risk profiles of corporations have dramatically shifted given two recent patent litigation dynamics:

1. The rise of patent trolls or NPE's (non-practicing entities)
2. The decline of patent infringement 'notice' letters replaced by direct filing of patent complaints 

The first dynamic is economic and includes a range of strategic and financial investors, including for example the well-known Intellectual Ventures, and others such as Juridica and Altititude Capital. These investors and an increasing number of firms see opportunities in the exclusionary rights provided by patents to obtain high-risk / high-reward economic returns.

The second dynamic is legal - driven by court decisions that incent patent plaintiffs to file first and negotiate second (the reverse of historical tendencies). 

During this week's Licensing Executive's Society Spring Meeting in Boston, several interesting dynamics are appearing.

Most interesting was the growing willingness of participants to discuss the past few years' "IP bubble" and the recent focus on patents' dollar value calculations and patent valuation.

In a range of discussions from university technology transfer directors to patent attorneys and technology company executives, we appear to be returning to a focus on fundamental components of patent value:

• Understanding the importance of the technology
• Focusing upon the quality of the legal protection

•  And, figuring out the proper or best commercialization strategies

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.