RPX Corporation (NASDAQ: RPXC), the leading provider of patent risk management solutions, today announced that it is offering a solution for software companies to insure their contractual indemnity obligations, with policies where both a supplier and its downstream customers are covered if a non-practicing entity (NPE or “patent troll”) sues for alleged patent infringement.
“Based on our unique ability to quantify patent risk company by company, we have designed an effective risk transfer solution for companies to insure themselves and their customers against NPE litigation,” said John A. Amster, Chief Executive and Co-founder of RPX. “Today, an indemnification policy from RPX turns an uncertain risk into a predictable and manageable cost of doing business.”
“Many of our clients have been looking for a solution to insure themselves and their customers against the threat of patent troll lawsuits,” said David L. Schaefer, President and CEO of AHT Insurance. “We are delighted that RPX has devised a solution to effectively transfer this risk.”
Software companies and their clients are particularly vulnerable to the threat of patent troll litigation. According to RPX research, every time a supplier is sued by an NPE, an average of five of its customers are sued as well. Further, in 30% of software-related NPE campaigns since 2012, no supplier was even named in the suit. RPX’s patent litigation insurance can help software suppliers manage the risk of NPE litigation for themselves and their customers.
“We offer a suite of solutions that enables companies to understand the scope of this risk and manage it for their customers in numerous ways,” said Paul E. Scola, Senior Vice President for RPX Insurance Services. “Companies have the option to directly insure their indemnification obligations or to acquire policies for the benefit of their customers.”
All RPX patent litigation insurance products benefit from RPX’s defensive patent acquisition service, proprietary data, and research, which enable RPX to effectively mitigate and insure patent troll risk. Using its actuarial model, RPX insurance policies are tailored to the specific risk and coverage needs of each insured. RPX policies provide integrated claims management, preferred provider legal services, and case resolution support, thus allowing a company to fully outsource every aspect of dealing with NPE risk.
The insurance offering is administered by RPX Insurance Services LLC, a wholly-owned subsidiary of RPX Corporation and a Lloyd’s coverholder. Binding Authority UMR Number: B0618FB14A605A; California License Number: 0H74909
More information about RPX Insurance Services and its offerings is available at www.rpxinsurance.com.