Did Blackboard put together a patent portfolio, and use it dissuade potential competitors? Or do they have a separate business unit that writes patents without actually producing any valuable product and seeking to make money from lawsuits?
The latter is a patent troll; the former is a business best-practice.
(I feel compelled to say that I don't agree with software patents in any form, but until the system is reformed, it's stupid not to play by the rules.
They went public early and were quickly on the ropes trying to make their stuff work. They then turned to intimidation of their competitors by trying to (so I understand, but probably not in an unbiased way) stretch the coverage of their patents rather than giving the teachers the system that they need.
They were(are?) way overvalued and trying to defend their position, not by getting better but by stifling innovation. The one they couldn't intimidate they bought (webCT) to the detriment of us all.
IMHO, what is stupid about what they did was to not innovate once they had the financial advantage after going public. They were the only public player at that time, and raised quite a bit of capital as I recall.
The patent was eventually overturned, but at non-insignificant cost to all parties involved. (http://en.wikipedia.org/wiki/Blackboard_Inc.#Blackboard_lega...)
As business, the choice to use your patent offensively to go after a competitor may come at the expense of, y'know, actually improving your product,which it seems Blackboard has chosen to do.