A transparent market is an efficient market. Unfortunately, the patent market is almost entirely opaque. Patents change hands with little, if any, public notice and interested parties often have no opportunity to address relevant assets in a competitive open-market setting.
Half of asserted NPE patents are transferred by operating companies to NPEs, but nearly 80% of these patents were assigned directly to the asserting NPE. Because the assets were never offered to other potential buyers or licensees, the first time most defendants learn about these patents that they are accused of infringing is when they are sued.
While some companies may choose to monetize their patents, to do so without first providing others the opportunity to purchase or license the patents can lead to a lower price for the seller, higher costs for potential licensee and ill-will from industry peers. It only makes sense to first explore a transaction with potential licensees directly and avoid the cost, waste, and risk of litigation.
RPX OPEN makes this possible, with the maximum amount of flexibility for all participants. Companies participating in RPX OPEN consent to provide at least 45 days notice before agreeing to transfer patents to an NPE. All participants have the opportunity to examine the patents in question and – if the assets are relevant – can engage as a potential buyer or licensee within the safe forum of OPEN.
The OPEN participant selling the patents is not obligated to sell or license the patents to other participants and is still free to ultimately transfer the patents to an NPE. Other OPEN participants are not obligated to purchase or license the patents. But by providing notice through OPEN, a seller has a great chance of obtaining a better outcome including the possibility of meaningfully higher proceeds than had they not provided notice. Moreover, dealing directly with other OPEN participants can avoid the cost and distraction of wasteful litigation for all involved. Importantly, participation in OPEN is free and available to companies, whether or not they are members of the RPX network.
RPX OPEN is committed to changing the way companies choose to monetize their patents. We already have 30+ participating companies representing more than 120,000 active US patents combined.
A transparent approach to patent licensing benefits any company making, using or selling technology.