Press Release, February 2015, Paris: Spacecode is to be an inaugural participant in RPX Corporation’s RPX Open Patent Exchange Network (OPEN), aimed at providing visibility into patent transactions. RPX is the leading provider of patent risk management solutions, offering defensive buying, acquisition syndication, patent intelligence and advisory services.
RPX research shows that more than two-thirds of the transacted patents sold by operating companies that were the basis for an NPE lawsuit were never visible to other companies until the lawsuit appeared.Along with big-name patent owners such as Apple, Cisco Systems, and Midatech Pharma, Spacecode pledges to notify RPX and other participants at least 45 days prior to agreeing to transfer patents to non-practicing entities (NPEs), which are sometimes called “patent trolls” whose sole business is acquiring and asserting patents, typically against large product companies. “This is the first tangible, enforceable, and scalable mechanism for bringing visibility to patent transactions. We are excited to be laying the foundation for a ‘multiple listing service’ that allows companies potentially impacted by a patent sale to an NPE to contact the seller and negotiate a license or buy the assets before they are sold to an NPE,” said John A. Amster, Chief Executive and co-founder of RPX Corporation. “RPX OPEN aims at avoiding litigation and helping create a patent market with more efficient price discovery, more rational patent valuations, and lower transaction costs overall.”
Commenting on his company’s participation, Spacecode CEO Pavlo Protopapa said: “We like the idea because all participants can be disclosed publicly, and that advances the goal of industry transparency. Other OPEN participants may decide to sell patents to trolls in areas that could impact Spacecode, and we would want to know about that in advance of the sale to potentially try and get a licence. This would be much cheaper than being sued later under the patent.”