I think what he is referring to is when two mega corps would get into an IP dispute, the lawyers would bring the patent portfolios to the table. It would not be feasible to actually read through them all, so the agreement would be "surely in my large stack you are violating something and surely in your large stack we are violating something." So then you would weigh or measure the height of the stack, and the owner of the smaller would pay some royalties to the owner of the larger.

This is an exaggeration of course, but perhaps not far off the mark.