RPX, the leading provider of patent risk management solutions, today announced the availability of Volatility Risk Coverage, litigation insurance for companies facing variable frequency and spikes in patent litigation costs.
These companies now have a reasonably priced insurance option to transfer their risk and combat litigations brought by non-practicing entities (NPEs or "patent trolls").
"Our latest insurance product helps companies that have been frustrated by the inability to plan and budget for patent litigation that varied yearly in frequency and cost," said John A. Amster, Chief Executive and Co-founder of RPX. "Companies can now inexpensively transfer patent risk to a trusted partner, saving time and distraction."
Many companies have occasional spikes in their annual volume of NPE litigation or associated costs. Volatility Risk Coverage from RPX helps to offset costs when a company faces a year with increased litigation activity or unexpected jumps in litigation costs.
The coverage reimburses after a self-insured retention is met — generally set at an average year’s costs — though companies will leverage RPX’s litigation management and risk advisory services on every case. With RPX Insurance Services, companies can reduce litigation expenses on patent troll related cases by as much as 80%.
"For years, our largest clients have sought a way to insure against the threat of spikes in litigation costs and potentially damaging patent troll lawsuits," said Shawn Ram, Executive Managing Director of Crystal and Company. "We are excited to be able to provide them with this solution that evens out their previously unpredictable risk."
"We are offering companies with the potential for large-scale risk a real insurance solution that no other company can," said Paul E. Scola, Senior Vice President for RPX Insurance Services. "Our unique position in the patent market — having resolved more than 140 litigations and avoided more than 3500 for our clients — allows us understand the size and scope of a company’s potential exposure, and how to best mitigate and insure against it."