There was one thing everyone could agree on during a hearing earlier this week in Cascades Computer Innovation v. RPX: RPX has a “unique” business model. What they can’t agree on is whether RPX is unique because it’s an innovative way to reduce companies’ payments to “patent trolls” or because it’s a conspiracy that violates antitrust law.
RPX Corp. works by collecting membership fees from more than 100 companies, and in return buys up patents that could be used by trolls, or nonpracticing entities, to threaten them. The company was founded in 2008 and went public last year. Cascades sued RPX and a quintet of major tech companies in March, after failed negotiations over a patent portfolio. Cascades claims that RPX’s business model is to create a “group boycott,” limiting the market for patent licensing to one buyer and creating an illegal “monopsony.”
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