Patent Litigation - as a busness model, Defensive Patent Aggregation Service

Reduce Patent Litigation Costs > Company > Solution > Defensive Patent Aggregation Service

Patent litigation used to be a form of legal redress. Today it is a business model.

A key component of RPX’s market-based solution to the patent litigation problem is our defensive patent aggregation service. Pioneered by RPX, defensive patent aggregation is analogous to insurance, but where classic insurance lowers a company's costs when accidents happen, this service is designed to reduce the likelihood of accidents happening at all.
We identify and purchase patent assets of high value, relevance and risk that could be used offensively against members of our client network. Depending on the situation, we may acquire assets from a third party or directly from an NPE. When necessary and possible, we will purchase patent rights directly out of an active litigation. We will never use our patents offensively.
Our clients receive a license to all patents and associated rights aggregated in the portfolio. Over time, our clients receive perpetual license not only to the patents held when they became members or purchased after they joined, but also to any patents sold during their membership. Patents in the portfolio are also available for members to use in a counterclaim against any non-member who initiates litigation.
Subscription fees range from $60,000 to $6.6 million and are rate-card-based using a client’s operating income. Early-joining members lock in a lower rate card, as our rate card will increase slightly each year to account for the growing value of our portfolio. Companies that join RPX’s client network later receive the same benefits, but pay the then-current rates.

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Patent litigation used to be a form of legal redress. Today it is a business model. A multi-billion dollar industry has emerged based on litigating intellectual property rights for financial gain. Patents are the assets in this new business model. And operating companies are the revenue source.
As a provider of patent risk solutions, RPX helps corporations manage their exposure to patent litigation. We have introduced efficiency to the patent market by providing a rational alternative to traditional litigation strategy for our clients, offering defensive buying, acquisition syndication, patent intelligence, and advisory services.
Our pioneering approach combines principal capital, deep patent expertise, and client contributions to generate enhanced patent buying power to manage patent risks and ongoing costs. By acquiring potential problem patents, we significantly reduce patent assertions directed at our client network. We will never assert or litigate the patents in our portfolio.