The astounding sum paid by Microsoft for 800 AOL patents has led to speculation over whether Microsoft overpaid. GPC's Alexander Poltorak offered his opinion on the patent purchase in an interview with the Wall Street Journal. ("Tech Patents Soar in Value" The Wall Street Journal - April 9, 2012)
Article excerpt: Alexander Poltorak, chief executive of patent brokerage and enforcement firm General Patent Corp., said he believes that Microsoft is paying an "exorbitant" price, at more than $1 million for each AOL patent licensed or purchased. For comparison, last year's landmark $4.5 billion sale of Nortel Networks Corp. patents worked out to roughly $750,000 a patent.
Mr. Poltorak said that even good quality patents purchased as part of such a large portfolio, rather than "cherry picked" on an individual basis, usually have a market value of between $100,000 and $200,000 apiece. On average, he added, only about 5% of any large company's portfolio consists of patents that are "worthwhile," or readily enforceable in court.