Intellectual property is integral to global business. Worldwide, patent license revenue exceeds $110 billion annually and is growing at 20% each year. Managing and protecting patents is a strategic function for large corporations; not only in the technology industry, but for thousands of companies that rely on patented technologies. Few if any retail, hospitality, entertainment, healthcare, financial services, or manufacturing companies could function without using technologies covered by tens of thousands of patents.

An orderly, rational, and fair market to manage intellectual property is crucial for business. 

This situation has also been exacerbated by the growth and evolution of the patent marketplace. But as the number of patents has exploded (more than 150,000 are issued every year), the boundaries between similar patents have blurred and there has been a significant increase in potentional disputes between holders.

In the first six months of 2008 alone, more than 1,500 patent lawsuits, many of which have multiple defendants, were filed in the United States. And for every case that makes it to a court filing, there are many more that are settled in pre-litigation.

Typical defense and settlement costs for patent assertions can result in multi-million dollar fees with an average cost per suit of $43 million. If a case actually goes to trial, companies can face the risk of eight-figure settlement payouts. Nor are all rights assertions nuisance suits. Small patent holders with legitimate claims of infringement also take on huge risks by going to trial.

What’s needed is a system of rational and fair patent rights ownership and clearance – a way for owners to receive fair value for their IP without needing to use the threat or actuality of legal action and for users of patented technologies to execute their business models without fear of nuisance claims of infringement.

Rational Patent Exchange is that system.