RPX Corp (RPXC), Apple Inc. (AAPL): Patent Lawsuits A Thing Of The Past?

Origins

There are many companies that rely on patents for revenue. The Eastman Kodak Company was one of the first developers of digital cameras, and held essential digital imaging patents that are relevant in today’s smartphones. As the company struggled with a turnaround, it sold off most of its consumer-based businesses so it could focus on corporate imaging and motion pictures. While in bankruptcy, Kodak then sold off many of its patents for $525 million to a consortium which in turn founded RPX.

Source: PC Magazine

The above chart show just how many intellectual property lawsuits there have been in recent years. Even though the patents that Kodak sold during the bankruptcy were the building blocks that today’s smartphones are built on, Kodak was slow to move into the space and saw its traditional film market dry up while trying to do so. Kodak will emerge from bankruptcy at a fraction of the size of the former empire. It will be focused on highly competitive but more lucrative corporate clients and selling off its name-brand consumer goods.

Foolish bottom line

The future of technology builds upon the technology of the past for progress. Future companies will rely on an increasing number of patented technologies, and also on access to those patents. RPX Corp (NASDAQ:RPXC) will see its top and bottom-line grow as more companies adopt the model of partially outsourcing their legal departments. RPX will be able to provide litigation risk management and access to a host of patents for these companies, allowing them to focus on what they do best: building products that consumers and businesses want.

The article One Company Holds the Key to Avoiding Patent Lawsuits originally appeared on Fool.com and is written by Wes Patoka.

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