Yahoo’s Patents May Not Be Worth That Much At All

Is Yahoo in for a rude awakening when it comes time to sell their patent portfolio?

According to Fortune, a summary of the report that was published this week claims that 44 percent of the thousands of patents have “high severity” issues, which indicated over a 90 percent likelihood that a patent would not survive a challenge.

Additionally, the report says that nearly all of the patents, including pending ones, have deficiencies that could lead them to be invalidated.

In April, the New York Post cited IP experts that said Yahoo could reap between $3 and $4 billion for their portfolio.

When I wrote about this earlier this year, I used Eastman Kodak’s sale as a cautionary tale, and it appears that Yahoo may find themselves in a similar predicament. When a company is on the ropes, the sad truth is that their patent portfolio is being sold in a buyer’s market, especially if a company has failed to be inventive in the recent past.

In both Yahoo and Kodak’s cases, the takeaway for firms around the globe is easy, one that seems self-explanatory, but somehow is often elusive: Never stop innovating, or else your patent portfolio will be far less valuable than you think.