PATENTS

Acacia’s only identifiable intangible assets are patents and patent rights, with estimated remaining economic useful lives ranging from one to seven years. The gross carrying amounts and accumulated amortization related to acquired intangible assets as of December 31, 2011 and 2010 are as follows (in thousands):



	2011			2010

Gross carrying amount - patents	$	61,519		$	51,001
Accumulated amortization - patents	(36,331		)	(31,198		)
Patents, net	$	25,188		$	19,803

The weighted-average remaining estimated economic useful life of Acacia’s patents and patent rights is five years. Scheduled annual aggregate amortization expense for each of the next five years through December 31, 2016 is estimated to be $5,115,000 in 2012, $4,896,000 in 2013, $4,707,000 in 2014, $4,264,000 in 2015 and $3,118,000 in 2016.

For the years ended December 31, 2011, 2010 and 2009, on a consolidated basis, Acacia’s operating subsidiaries incurred and capitalized patent and patent rights acquisition costs totaling $14,680,000, $8,224,000 and $9,625,000, respectively. The patents have estimated economic useful lives ranging from one to seven years and are being amortized over weighted-average economic useful lives of seven years. For all periods presented, all of Acacia’s acquired intangible assets were subject to amortization. Included in capitalized patent costs as of December 31, 2011 and 2010 are $900,000 and $1,050,000, respectively, of accrued future patent-related acquisition costs that management expects to incur pursuant to the terms of the underlying patent acquisition agreements, which are being amortized over the estimated economic useful life of the patents acquired.

During the periods presented, certain operating subsidiaries recovered up-front patent portfolio acquisition costs from applicable net licensing proceeds prior to the scheduled amortization of such up-front patent portfolio acquisition costs, resulting in the acceleration of amortization expense for the applicable patent-related assets. For the years ended December 31, 2011, 2010 and 2009, accelerated amortization expense related to the recovery of up-front patent acquisition costs totaled $3,111,000, $1,171,000 and $42,000, respectively.

In 2011 and 2010, pursuant to the terms of the respective inventor agreements, certain Acacia operating subsidiaries elected to terminate their rights to patent portfolios, resulting in the acceleration of amortization expense for the patent-related assets totaling $821,000 and $275,000, respectively.

Patent costs and accumulated amortization related to patent-related disposals totaled $4,612,000 and $3,509,000, respectively, for the year ended December 31, 2011. Patent costs and accumulated amortization related to patent-related disposals totaled $1,540,000 and $1,108,000, respectively, for the year ended December 31, 2010. Proceeds of $11,000,000 and $240,000, and costs of $4,717,000 and $94,000, related to the sale of patents, are included in net operating income for the years ended December 31, 2011 and 2010, respectively.