RPX Offers Patent Troll Insurance to Startups
About patent trolls have written many times. These companies sue very significant, sometimes six-figure sums from their victims. It is very difficult to defend against the patent troll, and not all companies bring the case to court, agreeing to pay the required amount voluntarily. Patent trolls are still alive and well, despite all attempts to end this practice by the legislature and large corporations.
However, there are new methods of protection, and very original ones. These methods are used by RPX, sometimes referred to as the “patent protection aggregator”. The company's business is to provide expensive memberships to various companies that seek protection from patent trolls. After signing an agreement with such a company, RPX specialists redeem patents from third parties and companies that can be used against a company that has subscribed to RPX. This is called “proactive patent buyback."
This business is very profitable, and this year alone RPX will receive a profit of 56 million of 256 million revenue. Such profits allow the company to expand its business. And RPX now offers an interesting service: patent troll insurance. The client, paying an annual fee, receives a guarantee of compensation for losses from RPX, in case of financial losses due to the actions of the patent troll.
Now the total number of litigations for patent troll claims is about 60% of all patent litigation cases. In the second quarter of this year, only in the US patent trolls initiated 855 lawsuits. It is understood that companies wish to receive protection from trolls and losses related to claims.
The other day, RPX has offered a new service for companies whose revenue is less than 20 million per year. The annual insurance premium from such companies is $ 7,500-1,000. At the same time, RPX is going to insure even companies that only need to receive income, and now are self-supporting.
If the patent troll begins to sue the client of the company, RPX covers all legal costs and expenses.
As for large companies, with an income of more than 20 million a year, the contributions for them are 25 thousand a year.
Of course, it would be good if they would deal with patent trolls once and for all at the legislative level. But it seems that a similar situation in the market will continue for a long time, therefore, protection methods will be more and more unusual.