What is the economic rationale for using RPX’s Defensive Patent Aggregation service?
For a well established operating company, the cost of defending a single key patent assertion can range from $50,000 to $500,000. If the assertion moves to litigation, costs can easily exceed $5 million in legal fees alone. Each RPX member should be able to easily demonstrate a positive ROI at the end of each year by showing that the patent rights acquired would have cost more if in the hands of NPEs. This ROI can usually be demonstrated based on legal cost savings. The ROI is substantially higher if license value of the portfolio is taken into account. A one-year membership in RPX is less than $4.9 million.
