Is RPX’s “Defensive Patent Aggregation” Simply Patent Extortion By Another Name?

Patent litigation is getting so bad that a new startup, RPX Corp. (aka, Rational Patent) is gearing up to help companies defend themselves specifically against patent trolls (organizations that buy up patent portfolios with the express intention of forcing other companies to license those patents or face a lawsuit). RPX markets itself as a "defensive patent aggregator." It buys up its own patents, or strikes licensing deals on behalf of its members, and charges companies $35,000 to $4.9 million a year for perpetual licenses to those patents. In other words, pay up now and any patents in RPX's portfolio can't be used in litigation against your company. RPX is clearly not as bad as some of the more egregious patent trolls out there, or even patent funds like Nathan Myrhvold's Intellectual Ventures . In fact, it promises never to use its patents in litigation against companies, and there is obviously a demand for its services. (Cisco and IBM have already signed up). Ultimately, its business still boils down to a protection racket. An enlightened one, perhaps, but still a protection racket.