Definitely a sign that Yahoo stopped getting profit from doing anything useful, since they fell so low as to use software patents litigations for their income.
Apple and Microsoft are notorious software patent aggressors who consider patent protection racket an acceptable "business practice". Google on the other hand tries to avoid anything of that sort, and uses patents only for defense against patent aggressors. At least Google used to up until latest Motorola acquisition which mixed their policy up. Didn't really look into what Samsung is doing in detail, but they usually just fight back (for example to Apple) as defense, and don't act as aggressors.
Yahoo didn't engage in software patent aggression before. So whatever the case, acting as a software patent aggressor shows deterioration of company ethics and usually signals that they can't compete on merit.
Definitely a sign of desperation. I imagine, stale board room meetings, lackluster performance in product development and an anxious board. Scott Thompson took this for a red flag and called it for what it is, a sinking ship.
Except this lacks in both grace and providing the company with any innovative, competitive, long term solutions, and definitely sets it in a bad light. I don't see any benefit to doing this.
There are benefits to expunging any good will you have in a community, reaping what short term profit is available then going into liquidation.
Maybe yahoo is pursing this goal.... with their schizophrenic product line (they once had two competing photo sharing sites under their banner and three social networks), I can imagine that they are worth more as separate parts than as a single undirected company.
Or... they can organize themselves as a traditional conglomerate.
Three signs (flickr fiasco, massive job cuts, now patent trolling) so far, of possible buyout... either by a good-willed or malignant purchaser, depending on how Yahoo management play their cards.
These are good moves only in the short-term. Either Yahoo is flailing, or it's setting itself up for sale. Lots of good folks who work there (some of whom I know well)... I hope they're prepared.
