These intellectual property companies are common.
Typically it's a group of rich lawyers who buy up
a bunch of patents, or buy small companies with
patents, and then form a company with the *sole*
intent of litigation.
They didn't invent anything, they don't even have
the capacity to invent anything, they're just money-
hungry lawyers hoping to cash in at the expense of
other people.
Obviously this is also a worst-case example,
sometimes the patent holders really get screwed too.
I'd personally like to see a little more protection
for the little guy be built into the system. Our
(USA's) corporations seem to be getting out of
control.