Patents – a way around an archaic practice that stifles startups
Disruptive to innovation in itself are patents. How can a bootstrapped startup ever afford an expensive patent lawyer to pre-check innovation?
Getting seriously in the way are patent trolls who make a profit finding startups that potentially break a patent and then leverage them into product abandonment or worse – licence payments.
So now a US company, RPX has started offering patent insurance for startups, “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.”Disrupted Patents – Finally a way to disarm patents for startups