IP Trend: Small Companies Merging To Become Publicly-Traded Trolls

A handful of U.S. companies have recently used merger deals to become publicly-traded patent owners, attracting investors looking to cash in on the rise of patent troll firms. The article highlights one company, Spherix, a struggling medication development firm that raised more money in a month than it had earned in average annual revenue after merging with patent-acquisition firm North South Holdings Inc. But investors should be wary, some say, as larger tech companies such as Google and Cisco Systems Inc. are increasingly choosing to fight back against patent lawsuits, and even if a lawsuit goes well for a patent assertion firm, the damages awarded may underwhelm shareholder expectations.