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SOURCE RPX Corporation
RPX establishes broad distribution potential for insurance designed to protect companies facing patent risk.
SAN FRANCISCO, June 10, 2014 /PRNewswire/ -- 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.
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.
About CRC Wholesale Group
CRC Wholesale Group is the second largest wholesale distributor of property and casualty insurance products in the United States. The company's 1,800 employees together placed nearly $5 billion in insurance premium in 2013. CRC Wholesale Group operates eight brands, each with a unique focus – CRC, CRC|Crump, Southern Cross Underwriters, Tapco Underwriters, Negley Associates, 5Star Specialty Programs, Target Insurance Services, and Hanleigh. Learn more about each at www.crcwholesalegroup.com
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include the quotations from management in this press release, as well as any statements regarding the Company's strategic and operational plans. The Company's actual results may differ materially from those anticipated in these forward-looking statements. Factors that may contribute to such differences include, among others, the Company's ability to purchase patents or licenses to patents that reduce NPE risk for its clients and reduce losses incurred on insurance claims. Forward-looking statements are often identified by the use of words such as, but not limited to, "anticipate," "believe," "can," "continue," "may," "should," and similar expressions or variations intended to identify forward-looking statements. More information about potential factors that could affect the Company's business and financial results is contained in the Company's most recent annual report on Form 10-K, its quarterly reports on Form 10-Q, and the Company's other filings with the SEC . The Company does not intend, and undertakes no duty, to update any forward-looking statements to reflect future events or circumstances.
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