What does RPX Patent Litigation Insurance cover?

RPX’s base policy covers lawsuits filed in the United States that allege patent infringement against its policyholders. An applicant’s size, historical litigation, and industry sector influence how we customize each policy to ensure appropriate coverage and alignment of interests.

Each policy is written to the specific risk and coverage needs of the insured. Using our patent analytics and proprietary database of litigation and settlement costs, we have built a highly accurate actuarial model that allows us to develop the appropriate coverage and price for each policyholder.

RPX has access to policy limits that can address just about any level of exposure. Coverage can be extended beyond the individual insured to include an insured’s indemnity risk. RPX also offers program level coverage for portfolios of companies managed via venture capital funds, private equity firms, and trade associations. Should a risk profile suggest international coverage is needed, RPX will cooperate with other carriers to address a company’s exposure in certain international venues. Every policy includes RPX’s risk management services and access to our proprietary litigation data and claims management support.

What if I want coverage for patent cases filed outside of the United States?

Should a risk profile suggest international coverage is needed, RPX will cooperate with other carriers to address a company’s exposure in certain international venues.

Can my policy cover my customers?

Yes, RPX offers a solution for technology companies to insure their contractual indemnity obligations, with policies where downstream customers are covered if sued for alleged patent infringement.  Indemnification coverage for patent infringement is necessary because the patent laws create risk not only for the manufacturers of technology, but also for the sellers and users of their products.  For example, Microsoft has recently announced Azure IP Advantage, offering uncapped indemnification for its cloud services and any open source software incorporated in these services.

What is the application process?

For companies with minimal patent litigation history, the application process is simple. Our one-page short form application takes less than 10 minutes to complete, asking for basic information such as three-year financials and any historical litigation data. The completed form is then processed by the RPX Underwriting team, and a bindable quote is delivered in less than one week.

For companies with more extensive patent litigation history, the application process should still only take 1-2 hours. Additional information is required to allow the RPX Underwriting team to provide an accurate, bindable quote. Please note that the online insurance application contains a confidentiality provision. However, if an applicant remains concerned about potential disclosure of confidential information, we will provide and execute an NDA. If desired, we will schedule time to walk through the application with you, and we are always available to answer any questions. After we receive the completed application, we will analyze your patent infringement risk using our unique, data-driven actuarial model, and schedule a meeting to present your patent risk profile and solution pricing. This profile is provided at no cost. Upon your request, we will then present a bindable quote.

Who will manage my claim?

RPX is the only provider of patent insurance in the market with complete claims handling capability and authority. When you make a claim, you can be assured that the same group of patent experts who serve the world’s largest technology users and makers will be managing your claim.

What is the Panel Counsel program?

The Panel Counsel program consists of pre-vetted, select litigation teams from law firms across the country with which we have pre-negotiated discounts for litigation services provided to our policyholders. Our Panel Counsel program members have proven patent litigation track records and experience defending companies against NPEs. In addition, Panel Counsel program members have demonstrated efficient case management. Policyholders who select Panel Counsel program members to represent them pay a lower co-insurance percentage: 20% instead of 25%. Upon request, we will be happy to provide a list of our Panel Counsel program members.

Is there an option to use non-Panel Counsel?

Yes, policyholders have the option to use attorneys not in our Panel Counsel. We recognize that some insureds may have longstanding relationships with outside patent counsel who best know and understand the policyholder, its business, and its products and services. Our insurance policy is not a duty-to-defend form. This means that while there necessarily will be close collaboration, you have the right to control the course of litigation while RPX Insurance Services has the right to control which litigation costs the insurance policy will reimburse. Both Panel and non-Panel Counsel must comply with the RPX Insurance Services best practices and billing, budgeting, and reporting procedures.

How do I submit a claim and what is the process?

One of the defining – and distinguishing – hallmarks of RPX Patent Insurance is our uniquely proactive approach to claims management. We often engage with policyholders before an infringement assertion advances into litigation and mitigate the risk before it becomes a costly legal event. This proactive approach, and our emphasis on early negotiation and settlement, means that RPX engages with clients far more comprehensively than a traditional insurer. To date, our claims management processes have resolved events for policyholders for approximately half what they would have otherwise cost.

Once you join RPX and become a policyholder, you will receive Claim Reporting Instructions in your welcome packet. Using a form provided by RPX Insurance Services, you will submit written notice of the claim, which will include information such as the following: contact information for the individual(s) knowledgeable about the claim; a copy of the complaint; when the notice of the lawsuit was received; description of any communications with the plaintiff before or since receiving notice of the lawsuit; whether a claim is being made on any other insurance policies you have; and whether you intend to use our Panel Counsel services.

How are claim reimbursement requests processed?

The insured is responsible for initially paying litigation expenses because the policy is an expense reimbursement form. The Insured will request reimbursement of litigation expenses on a monthly basis, and the policy will reimburse the Insured out of the available limits for qualifying litigation expenses.

What protection does a company have from assertions that are not claims?

Defining a claim as a lawsuit avoids uncertainty regarding the triggering of a dispute and whether a cost is a litigation expense. In addition to the protections afforded by the insurance policy, some policyholders may also see benefits from RPX’s ongoing defensive acquisition activity including preemptive clearing of risk and access to RPX Insight.

What are the benefits of joining the RPX client network and purchasing insurance?

RPX membership and our defensive acquisition service offer unique levers to manage NPE exposure by clearing patents through both pre-litigation acquisitions and license-rights acquisitions out of pending NPE litigations. This combination of services may appeal to certain companies.

  • Having these loss-control levers in place allows RPX Insurance Services to offer a scalable risk transfer solution that helps companies efficiently manage and mitigate their patent risk just like any of their other operational risks.
  • The combined solution gives the Insured the benefit of the RPX client network, a wealth of NPE, patent market, and patent litigation data and intelligence through RPX Insight, and more closely aligns the interests of policyholders with RPX.

In other words, RPX membership when combined with insurance coverage provides three levels of protection against NPE patent risk:

  • The first layer provides protection against NPEs acquiring patents.
  • The second layer provides a way to resolve NPE patent litigation.
  • The third layer reimburses you for defense costs when NPE patent litigation cannot be avoided or RPX does not obtain patent rights as a way to resolve the litigation.
Do I need to use my broker?

RPX offers patent insurance in direct sales, as well as through brokerage firms. We can easily engage with you directly or through your existing broker as you prefer.

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