Unfortunately Nintendo had already created the tech and had evidence, so IA Labs run themselves into the ground.
I would not label IA Labs a troll, thats not fair and misrepresents what was going on.
This case does, however, seem to be a solid win for reasonable patent law enforcement. The precedence from this appears to be: if you over-step or over attack using your patent portfolio, you'll pay a big price. Hopefully this will help those defending legal disputes with real patent trolls moving forward.
Does it? IANAL but I believe it's possible to license the rights associated with a patent without transferring complete ownership. The shell organization would be a sub-licensee that does your dirty work.
This is like saying that I have the rights to use the Unity engine, so I should be able to sue Microsoft for parts of Silverlight that I think are infringing and profit personally.
Having a license doesn't mean you can sue. Having a "license to sue" might though! (if it can exist)
In the media-tomb(?name might be wrong, and I know copyright is different) case, the lawsuits were all eventually shut down because the plaintiff, being the 'right to sue' licensee and not the owner, didn't actually have standing or right to sue.
Needless to say, IANAL as well.
But that's kind of a sideshow - I believe the real issue being pointed at is if the defendant chooses to argue that a patent is invalid, and succeeds, then the only award they get is the now-invalidated patent.
In this case, I don't see that. They may be called over-aggressive, evil even but not patent trolls.
Not everyone with a patent is a troll, rather many are the little guy who were not able to win the race because A) they don't have enough resources or B) they couldn't rally enough troops to get behind them.
Thus a patent is a way to stake a claim and protect their invention. If it's worth something then others will copy it and due to sheer luck make it a success. While you the inventor are left with an empty bag and oh a patent that you can try and use to be rewarded for your invention.
In other words, the patent system benefits big companies with big lawyer armies and trolls with nothing to lose, and is useless for the little inventor who doesn't have the muscle to fight the legal war if someone copies his precious invention but now also have to worry to be the one being sued because of some obvious patent one can infringe just by breathing.
But let's keep the fantasy that patents protect the little guy after all.