Does Level 5 even own the intellectual property of Professor Layton? 

Yeah, it's 100% Level-5's IP.   Unwound Future is probably the final one that Nintendo's publishing now that Level-5 is setting up their American and European publishing outfits, though I expect Nintendo will still distribute their DS/Wii/3DS games for them (while SCEA undoubtedly handles their PSP/PS3 stuff).

L5 isn't stupid though, they know where Layton sells and why exactly they're the fastest growing Japanese games maker (well, 3rd party at least).  If not for Nintendo and DS, they literally wouldn't be where they are today.

Drop the price and advertise, that all they have to do. Until 3DS is actually ON THE MARKET, they have nothing to fear about.

PSP doesn't need saving, it just needs to expand better, before the 3DS comes out anyways, or they'll really get destroyed. Kill Marcus would be the first step.

Make good software and advertise it.

And drop prices on games.

I forgot one thing... The PSP would need a killer franchise, like DS haves Pokemon and etc... Like, a great support to become the "symbol of the PSP"... I know Patapon and LocoRoco are good, but not exactly the type "I'll buy a PSP to play Patapon or LocoRoco"... Thoughts?

PSP does deserve saving, I hope it happens

The PSP has features that I just don't see with the DS/3DS. 

-For one, it has a huge screen.  More than a few times, me and a couple of friends have sat around watching movies on the PSP when we should have been working.

-It has a huge selection of under-promoted games like Jak and Daxter, Dissidia, and Loco Roco.  These games are exclusive and they're must plays!  People don't even know they exist.  And it can play PS1 games.  Why isn't Sony making a big deal about this!?!

-I can put any movie that I download from the net onto my PSP.  I already have some Hollywood hits and some porn on the console.  Will Nintendo ever let this sort of thing happen?  I seriously doubt it.  Again, Sony needs to let people know!!

-Somebody already said that the PSP needs to find its own identity.  People need to make MORE games that take advantage of the portable nature of the device.  Kids playing against each other on the playground.  Some sort of "E-Reader" device that let's them play some sort of Digimon/Yugio game in 3D if they owned the actual cards.  Something.  One thing Nintendo is willing to do is take risks on gimmicks.  Sony needs to quit thinking traditonally and start thinking creatively!!

-Unlock the memory restrictions on that web browser.  We all know that the damned thing car run the internet very well.  The current interface and the memory restrictions make web browsing more of a chore than anything else.  Update the browser and stop holding back!!

-Remember the Gameboy Player for the Gamecube or the Super Gameboy for the Snes?  Well, make a device like that for the PSP!!  The PS3 can run PS1 games.  PSP games look waaaaay better than that.  Let PS3 owners play PSP games on their consoles.  You never know.  They may have so much fun playing on the TV that they'd buy a PSP to play them on the road.

-I hate that Marcus PSP kid, but he's a step in the right direction.  Make the PSP cool.  Make it relevant.  I went with my kid to see Alvin and the Chipmunks 2 and Furry Vengeance (she likes shitty movies, I guess).  Man, I saw Xbox 360's and Wii's but I didn't see a PS3 or a PSP anywhere.  Put your product where people will see it and MAKE IT LOOK COOL!!  They had the technical advantage over the DS as far as pure horsepower was involved.  They blew it.  The 3DS is on the way.  While there's a little time left, let people know that the PSP is a graphical powerhouse before the bar gets raised.

The PSP is probably the most successful "failure" I've ever seen.  It's an awesome system with so much potential and --despite what many think--great sales.  But it could've been, should've been, and could be so much more.

I <3 PSP.

And for f****'s sake (I spell "fuck" differently than you), how about some demo kiosks?  I go to Wal-Mart or EB Games and I can actually PLAY a Nintendo DS right next to a DSXL.  I can play or at least see what a PS3/Wii/360 looks like on a HDTV --I was in store yesterday and Mario Galaxy 2 looked like so much fun when this kid was playing it that I debated buying it again!

With the PSP, it's either no demo at all or the portable system's is shown on a big HDTV screen.  Put the console inside of a glass case or something if they worry about people damaging the system but let customers see how the game will look on the hardware.  It will impress them.  I haven't seen a demo PSP in years!  Coincidentally, that's how long the PSP's sales have been suffering.........

One more thing:  If memory serves me, the Gameboy came out in 1989.  Pokemon came out in 1998.  That one franchise made the Gameboy sell like a brand new system, again.  It's never too late for that one killer franchise to come out.  If the PSP is the home of the next big fad, it'll be okay.