Nature of Business RPX Corporation (also referred to herein as RPX or the Company) helps companies reduce patent-related risk and expense by providing a subscription-based patent risk management solution that facilitates more efficient exchanges of value between owners and users of patents compared to transactions driven by actual or threatened litigation. The core of the Companys solution is defensive patent aggregation, in which it acquires patents or licenses to patents that are being or may be asserted against the Companys current or prospective clients. The Company occasionally enters into agreements to acquire covenants not to sue in order to further mitigate its clients litigation risk. The acquired patents, licenses to patents, patent rights and agreements for covenants not to sue are collectively referred to as patent assets. The Companys clients pay an annual subscription fee and in return, receive a license from the Company to substantially all of its patent assets and access to its proprietary patent market intelligence and data. In some instances, the Company accepts a payment from a client to finance part or all of an acquisition involving patent assets that may cost more than the Company is prepared to spend with its own capital resources or that are relevant only to a very small number of clients. In these instances, the Company facilitates syndicated transactions that include contributions from participating clients in addition to their annual subscription fees. In addition to the Companys core solution, in August 2012, the Company began underwriting patent infringement liability insurance policies to insure against certain costs of litigation. In March 2014, the Company formed a reinsurance company to assume a portion of the underwriting risk on insurance policies that the Company issues on behalf of a Lloyds of London underwriting syndicate. The Company began placing new policies under the reinsurance model in May 2014. As of and for the three months ended March 31, 2016 , the effec