by 
The Curious Bag
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Patent monetization has become an emerging form of corporate investment. Many companies now look at intellectual property, such as patents, as valuable assets. Patents are usually sold through brokers and auctions, even on eBay.
Patent Disputors
One type of patent buyer is a company trying to avoid or resolve a legal issue concerning a patent. The company may own a similar patent or is somehow infringing on an existing patent.
Venture Capitalists
Venture Capitalist firms look to buy patents as investments in intellectual property for future profits or trading. These groups include hedge funds trying to capitalize on speculative emerging technology.
Patent Aggregators
A new group of patent investors known as patent aggregators buy several patents and then license them to members and affiliates. Sometimes this is done to reduce the cost of licensing.
Market Dominators
A competitor may want to buy a patent simply to gain dominance of a market or industry. On the other hand, the company may want to buy a patent simply to eliminate a competing product as a way of strengthening its existing market position.
Technology Leaders
Many leading technology companies, such as IBM, AT&T, General Electric and Microsoft, have purchased thousands of patents over the years in order to keep their edge as technology innovators. Purchasing outside patents can also help reduce costs of in-house research and development, which can be appealing to shareholders.
Bargain Hunters
An overlooked but growing opportunity for patent bargain hunters has been to target distressed patent holders trying to raise capital. These companies need cash to avoid bankruptcy and are willing to sell their patent at a discount.
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