I believe that two recent Supreme Court decisions have made the patent licensing business model considerably more risky. As a result, all of the following companies are less attractive investments: ARM Holdings (ARMHY) Rambus (RMBS) Acacia Technology (ACTG) Burst.com (BRST.PK) Forgent Networks (FORG) Neomagic Corp. (NMGC) Patriot Scientific (PTSC.OB) Star Scientific (STSI) …and many others [...]

Burst.com (BRST.PK) is a patent licensing company that owns a handful of patents that appear to this layman to broadly cover cached streaming of audio and video. Like Patriot Scientific (PTSC.OB), Burst.com’s business model is to seek licensing agreements and, failing that, litigate against operating companies it believes are infringing on its patents. One key [...]