Flutterby™! :

Startups can now buy insurance against threat of patent trolls: RPX wants to protect small companies from patent threats. Premiums start at $7,500..

The company stays in control of its case, but there are "controls in the policy" regarding how it can react to an offer to settle. "This isn't a line of credit," said Scola. "If you want to make a statement to the NPE community, and fight to the death—that's not what we're doing."

And, of course, RPX is all about buying up patents. So, yeah: protection racket.

Via MeFi: Nice startup you have there...