The alliance is with patent house Intellectual Ventures, which has a large selection of innovation rights it licenses to other companies. It doesn't make any gadgets itself. LG will now be in a position to counter-sue more or less anyone who threatens to bring an action over patents.
Like a lot of readers, I'd guess, my first reaction on reading this was that it looks like a cynical move to use the courts rather than marketing a decent product to gain the customer's attention.
Then I thought again. Apple has successfully blocked Samsung from selling certain products in Germany and Australia by obtaining court injunctions. Meanwhile Samsung has repaid the compliment wherever it can.
This is now going to be very difficult to do in the case of LG. As long as it's used judiciously - by which I mean in blocking other litigation rather than in trying to stifle the competition - this could be a brilliant move which will enable good quality products to get to us consumers before the courts get to intervene.