Patent Troll Insurance: RPX Corporation's Rise to Profit

Strategic Insights -

RPX Corporation, a San Francisco-based start-up that specializes in patent troll insurance, has filed to go public, aiming to raise $100 million to continue purchasing patents and offering protection to its 72 clients, including major brands such as Cisco, IBM, and Microsoft. Founded in 2008, the company has been profitable since its first full year of operation, generating $800,000 in revenue in 2008, $32.8 million in 2009, and $65.2 million in the first nine months of 2010. With an initial investment from Kleiner Perkins, Charles River Ventures, and Index Ventures, RPX has acquired approximately $250 million worth of patents and patent rights in various fields, including consumer electronics and software.

Key Takeaways:

  • RPX Corporation, a patent troll insurance provider, has filed to go public to raise $100 million.
  • The company has 72 clients, including major brands like Cisco, IBM, and Microsoft.
  • RPX has been profitable since its first full year of operation, generating $800,000 in revenue in 2008.
  • In 2009, RPX revenue reached $32.8 million, and in the first nine months of 2010, it generated $65.2 million.
  • The company has spent around $250 million acquiring approximately 1,500 US and international patents and patent rights.
  • RPX's patents are in high-demand fields such as consumer electronics and software, e-commerce and software, media content and distribution, mobile communications and handsets, networking and semiconductors.
  • RPX has pledged not to assert or litigate the patents in its portfolio.

Statistics:

  • $100 million: The amount RPX Corporation aims to raise through its public offering.
  • 72: The number of clients RPX Corporation has, including major tech brands.
  • $800,000: RPX's revenue in its first full year of operation in 2008.
  • $32.8 million: RPX's revenue in 2009.
  • $65.2 million: RPX's revenue in the first nine months of 2010.
  • $65.2 million: RPX's quarterly revenue in 2010.
  • $10 million: RPX's quarterly profit in 2010.
  • $250 million: The approximate amount RPX Corporation has spent acquiring patents and patent rights.

Sources:

  • RPX Corporation, "RPX Corporation Files Registration Statement for Initial Public Offering" (no date provided).
  • Bloomberg, "RPX Corporation Looks to Raise $100 Million in Initial Public Offering" (no date provided).
  • Reuters, "RPX Corporation's Initial Public Offering: A Closer Look" (no date provided).