On the heels of two recent postings along this theme (11/17/02 and 11/16/02), the SF Chronicle published an article today about patents and their increasingly prodigious value to technology companies -- particularly during economic downturns.

The general idea is that securing an exclusive hold on any form of IP (patents, trade secrets and copyrights) can be a potent weapon against competitors, and can bring companies welcome royalties when other revenue channels are running dry. Amid some denials, a few have observed that aggressive IP investments and protections seem to follow a seasonal pattern. (In fat times, no one pays attention to the patent portfolio.) But IP-rich companies like IBM and Microsoft famously chant this mantra in any kind of economic weather.

On occasion, a patent application will fail to pass the proverbial "smell test" for novelty or originality. Yet sometimes, despite its offensive odor, a dubious patent application will somehow manage to slide on through, contrary to plain reason. And, not infrequently, disputes erupt over an invention's hotly contested true origin.

According to this recent article from IDG News Service, Microsoft's best ammunition against the Open Source movement may be the lethal combination of "junk software patents" and deep pockets for litigation.

The bottom line is, as ever, the bottom line. Exclusive IP holdings can make or break a company's competitive advantage in any economy.