RPX Selects CRC to Distribute “A” Rated Patent Insurance Service

RPX establishes broad distribution potential for insurance designed to protect companies facing patent risk.

RPX Corporation (NASDAQ: RPXC), the leading provider of patent risk management solutions, today announced that CRC Insurance Services will act as broker for its recently launched insurance service using a select group of brokers from CRC’s network across the United States. RPX Insurance Services, LLP, as a coverholder for Lloyd’s (AM Best rated “A”), underwrites, markets, and manages claims for the NPE insurance product. RPX believes its relationship with CRC will enable even more businesses facing patent infringement litigation with non-practicing entities (NPEs) to access RPX’s risk management services via the premier wholesale broker of insurance solutions.

“NPE litigation presents a large and growing business risk and can be a significant drain on company resources, especially for companies lacking in experience to address the problem,” said John A. Amster, Chief Executive and Co-founder of RPX. “Our “A” rated insurance is an effective solution and allows companies to plan for the costs of defending against NPE suits in a more efficient way. We are pleased to partner with CRC’s outstanding broker network to offer our solution more widely.”

Companies that provide technology-based products or services continue to be a target for NPEs, also known by the “patent troll” moniker. RPX research shows the overall cost to operating companies from NPE litigation has increased by roughly 160% since 2008 to almost $13 billion in 2013. RPX’s insurance solution offers policy limits up to $10 million and is available to companies ranging from early-stage to market-leading operations in the United States.

RPX’s unique insurance offering combines an NPE insurance policy with the risk mitigation capabilities of our defensive patent buying. RPX’s core defensive patent acquisition service limits risk by continually acquiring and clearing potentially problematic patents, both from the open market and out of litigation. With an annual spend of more than $125 million to acquire patents, RPX has achieved more than 500 dismissals from over 60 litigation matters during the past six years for its clients.

“Existing patent liability insurance solutions do not mitigate the risk of NPE litigation,” said Garrett Koehn at CRC Insurance Services. “The RPX solution provides an effective solution in the highly limited patent infringement insurance space by tackling the underlying causes of NPE risk. We are delighted to exclusively offer it to our clients.”

As of March 31, 2014, RPX had invested over $810 million to acquire more than 4,300 US and international patent assets and rights on behalf of the 178 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.