Nathan Myhrvold's firm Intellectual Ventures is trying to raise up to $1 billion to buy patents and to help inventors develop inventions. Although IV hasn't sued anyone yet, Mr. Myhrvold won't abjure such an action.

The Wall Street Journal reports here .

One of its goals is to deepen--and no doubt to widen--the "market" for the monopoly formerly known as intellectual property. And that's the rub. So called "IP" is a government-granted monopoly, and therefore is the antithesis of property, as that term is understood under natural law.

Making the market for "IP" more liquid is like making the market for slaves more liquid.

Ron Lurie, an executive at Inflexion Point Strategies LLC, chillingly points out that IV could send letters about its "800 patents that cover your business."

"[N]obody can risk going to court, and they're just going to write you a check."

How would you like to have that letter on your desk?

Historically the patent system hasn't brought innovation to a screeching halt because everyone has huge overlapping patent portfolios and everyone cheerfully ignores and violates everyone else's patents. In the semi-conductor industry this was called "mutally assured destruction" meaning if anyone tried to sue anyone else, it would result in an escalating series of countersuits. The situation is very different with respect to patent trolls like Intellectual Ventures that don't produce anything. They are free to sue, because as they don't produce anything they aren't subject to countersuit. This innovation - firms that specialize in suing people - will probably lead either to the end of innovation or patent reform. Let's hope it is the latter.