What is patent/licensing of intellectual property?

Gone are the days when vertically integrated firms handled every step of a product, from initial design to final sale. Now, a small army of specialist firms focus on narrow portions of technology, using intellectual-property rights to protect their inventions when they are licensed out. Technology firms are seeking more patents, expanding their scope, licensing more, litigating more and overhauling their business models around intellectual property. And some companies do little other than create and sell intellectual property. At the same time, however, the legitimacy of many patents granted is in question as patent offices struggle with the huge increase in demand. Over the past decade the number of patent applications has nearly doubled and continues to climb. Also climbing, is the number of lawsuits over patent infringement, the cost of litigation, and the amount of money plaintiffs are winning.