SAN FRANCISCO, April 16, 2014 /PRNewswire/ -- RPX Corporation (NASDAQ: RPXC), the leading provider of patent risk management solutions today launched a new insurance service for businesses facing patent infringement litigation with non-practicing entities (NPEs). As a coverholder at Lloyd's, RPX Insurance Services, LLC will provide marketing, underwriting, and claims management services on behalf of a syndicate at Lloyd's. As part of its entry to this new service, RPX has formed a reinsurance company that will share a portion of the underwritten risk.
Any company today that provides a technology-based product or service is at risk from the growing threat of NPEs, also known by the "patent troll" moniker. RPX's insurance solution focuses on the underlying causes of NPE risk. Through proactive market intervention, RPX reduces risk exposure by acquiring patents before NPEs can assert them against its network of 168 clients. The company has deployed more than $100 million annually to acquire patents in each of the past six years. This acquisition activity has led to companies in the RPX network receiving more than 430 dismissals from over 60 litigations. Using the unique data from this industry-leading acquisition activity to drive its actuarial model and underwriting methodology, RPX can model patent risk for policyholders and offer effective risk transfer.
"Our approval as a coverholder at Lloyd's further endorses our unique approach, and paves the way for RPX to offer a mainstream insurance product that could become as widely accepted as D&O or cyber liability coverage. We hope this RPX solution can enable patent risk to become a reasonable and predictable line item in companies' budgets, as opposed to the highly unpredictable risk it is today," said John A. Amster, Chief Executive and Co-founder of RPX.
NPE patent litigation costs companies worldwide almost $13 billion in defense expenses and settlements last year, up from roughly $5 billion in 2008. Also, RPX research shows the volume of NPE patent suits over the past five years increased nearly 600%, from approximately 600 in 2008 to more than 3,600 in 2013, impacting approximately 8,000 companies in the same period.
As of December 31, 2013, RPX had invested over $750 million to acquire more than 4,200 US and international patent assets and rights on behalf of the 168 members of its client network in seven key sectors: consumer electronics and PCs, E-commerce and software, financial services, media content and distribution, mobile communications and devices, networking, and semiconductors.
Lloyd's currently enjoys an "A" rating from AM Best and A+ ratings from Fitch Ratings and Standard & Poor's.
About RPX Corporation
RPX Corporation (NASDAQ: RPXC) is the leading provider of patent risk solutions, offering defensive buying, acquisition syndication, patent intelligence, insurance services, and advisory services. Since its founding in 2008, RPX has introduced efficiency to the patent market by providing a rational alternative to litigation. The San Francisco-based company's pioneering approach combines principal capital, deep patent expertise, and client contributions to generate enhanced patent buying power. By acquiring patents and patent rights, RPX helps to mitigate and manage patent risk for its growing client network.
Lloyd's is the world's specialist insurance and reinsurance market, bringing together an outstanding concentration of underwriting expertise and talent. It is often the first to insure emerging, unusual and complex risks.
Around 90 syndicates are underwriting insurance at Lloyd's, covering all classes of business. Together they interact with thousands of brokers daily to create insurance solutions for businesses in over 200 countries and territories around the world. Lloyd's insures the majority of FTSE 100 and Dow Jones industrial average companies.
Lloyd's enjoys strong financial security supported by excellent ratings.
Visit www.lloyds.com for more information.
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SOURCE RPX Corporation