Document And Entity Information - USD ($) $ in Millions	12 Months Ended
Document And Entity Information - USD ($) $ in Millions	Dec. 31, 2016	Feb. 17, 2017	Jun. 30, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	RPX Corporation
Document Type	10-K
Current Fiscal Year End Date	--12-31
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2016
Entity Common Stock, Shares Outstanding		48,526,180
Amendment Flag	false
Entity Central Index Key	0001509432
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Fiscal Period Focus	FY
Entity Public Float			$ 439.8

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 100,111	$ 94,983
Short-term investments	90,877	231,015
Restricted cash	500	701
Accounts receivable, net	64,395	13,905
Prepaid expenses and other current assets	4,524	12,643
Total current assets	260,407	353,247
Patent assets, net	212,999	254,560
Property and equipment, net	6,948	4,733
Intangible assets, net	56,050	1,801
Goodwill	151,322	19,978
Restricted cash, less current portion	965	727
Other assets	8,337	6,896
Deferred tax assets	38,261	16,619
Total assets	735,289	658,561
Current liabilities:
Accounts payable	3,197	959
Accrued liabilities	16,798	14,842
Deferred revenue	118,856	110,921
Deferred payment obligations	0	2,383
Current portion of long-term debt	6,474	0
Other current liabilities	1,484	467
Total current liabilities	146,809	129,572
Deferred revenue, less current portion	11,552	4,731
Deferred tax liabilities	4,023	0
Long-term debt, less current portion	88,110	0
Other liabilities	10,514	7,779
Total liabilities	261,008	142,082
Stockholders’ equity:
Preferred stock, $0.0001 par value — 10,000 shares authorized; none issued and outstanding	0	0
Common stock, $0.0001 par value — 200,000 shares authorized; 48,776 and 53,489 issued and outstanding as of December 31, 2016 and 2015, respectively	5	5
Additional paid-in capital	360,462	344,610
Retained earnings	130,249	172,115
Accumulated other comprehensive loss	(16,435)	(251)
Total stockholders’ equity	474,281	516,479
Total liabilities and stockholders’ equity	$ 735,289	$ 658,561

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Dec. 31, 2016	Dec. 31, 2015
Common stock, par value per share (in dollars per share)	$ 0.0001	$ 0.0001
Common stock authorized (in shares)	200,000	200,000
Common stock issued (in shares)	48,776	53,489
Common stock outstanding (in shares)	48,776	53,489
Preferred stock par value per share (in dollars per share)	$ 0.0001	$ 0.0001
Preferred shares authorized (in shares)	10,000	10,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Revenue	$ 333,107	$ 291,881	$ 259,335
Cost of revenue	197,262	148,858	124,435
Selling, general, and administrative expenses	100,457	77,428	71,679
Gain on sale of patent assets, net	0	(592)	(707)
Operating income	35,388	66,187	63,928
Interest and other income (expense), net:
Interest income	506	740	372
Interest expense	(3,015)	0	0
Other expense, net	(570)	(1,428)	(18)
Total interest and other income (expense), net	(3,079)	(688)	354
Income before provision for income taxes	32,309	65,499	64,282
Provision for income taxes	14,074	26,077	24,941
Net income	$ 18,235	$ 39,422	$ 39,341
Net income per share:
Basic	$ 0.36	$ 0.72	$ 0.74
Diluted	$ 0.36	$ 0.71	$ 0.72
Weighted-average shares used in computing net income per share:
Basic	50,462	54,432	53,444
Diluted	51,001	55,410	54,818

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 18,235	$ 39,422	$ 39,341
Unrealized gains (losses) on available-for-sale investments:
Unrealized holding gains (losses) arising during the period	97	(572)	(156)
Less: reclassification adjustment for losses included in net income	0	429	0
Net unrealized gains (losses) on available-for-sale investments, net of tax	97	(143)	(156)
Foreign currency translation adjustments	(16,281)	0	0
Comprehensive income	$ 2,051	$ 39,279	$ 39,185

Consolidated Statements Of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Balance (in shares) at Dec. 31, 2013		52,692
Balance at Dec. 31, 2013	$ 424,923	$ 5	$ 305,343	$ 119,527	$ 48
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	39,341			39,341
Unrealized loss on available-for-sale investments, net of tax	(156)				(156)
Issuance of common stock upon exercise of stock options, vesting of restricted stock units and other common stock issuances, shares		1,188
Issuance of common stock upon exercise of stock options, vesting of restricted stock units and other common stock issuances	3,163		3,163
Issuance of common stock related to business acquisition (in shares)		182
Issuance of common stock related to business acquisition	3,156		3,156
Stock-based compensation	17,747		17,747
Tax benefit of equity award deductions	(1,799)		(1,799)
Tax withholdings related to net share settlements of restricted stock units	4,928		4,928
Balance (in shares) at Dec. 31, 2014		54,062
Balance at Dec. 31, 2014	485,045	$ 5	326,280	158,868	(108)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	39,422			39,422
Unrealized loss on available-for-sale investments, net of tax	(143)				(143)
Issuance of common stock upon exercise of stock options, vesting of restricted stock units and other common stock issuances, shares		1,420
Issuance of common stock upon exercise of stock options, vesting of restricted stock units and other common stock issuances	5,013		5,013
Issuance of common stock related to business acquisition	0
Stock-based compensation	17,728		17,728
Tax benefit of equity award deductions	(686)		(686)
Repurchase of common stock (in shares)		(1,993)
Repurchase of common stock	(26,175)			(26,175)
Tax withholdings related to net share settlements of restricted stock units	5,097		5,097
Balance (in shares) at Dec. 31, 2015		53,489
Balance at Dec. 31, 2015	516,479	$ 5	344,610	172,115	(251)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	18,235			18,235
Unrealized loss on available-for-sale investments, net of tax	97				97
Foreign currency translation adjustments	$ (16,281)				(16,281)
Issuance of common stock upon exercise of stock options, vesting of restricted stock units and other common stock issuances, shares	444	1,211
Issuance of common stock upon exercise of stock options, vesting of restricted stock units and other common stock issuances	$ 3,778		3,778
Issuance of common stock related to business acquisition	0
Stock-based compensation	18,378		18,378
Tax benefit of equity award deductions	(2,119)		2,119
Repurchase of common stock (in shares)		(5,924)
Repurchase of common stock	(60,101)			(60,101)
Tax withholdings related to net share settlements of restricted stock units	4,185		4,185
Balance (in shares) at Dec. 31, 2016		48,776
Balance at Dec. 31, 2016	$ 474,281	$ 5	$ 360,462	$ 130,249	$ (16,435)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities
Net income	$ 18,235	$ 39,422	$ 39,341
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	171,623	145,835	123,138
Stock-based compensation	18,275	17,594	17,656
Excess tax benefit from stock-based compensation	(103)	(1,593)	(2,598)
Gain on sale of patent assets, net	0	(592)	(707)
Amortization of premium and discount on investments	2,247	6,666	6,585
Deferred taxes	(13,951)	(13,010)	(14,216)
Unrealized foreign currency loss	2,689	0	0
Fair value adjustments on deferred payment obligations	(1,920)	(3,887)	0
Gain on extinguishment of deferred payment obligation	(463)	(3,000)	0
Other-than-temporary impairment of short-term investments	0	5,096	0
Realized loss on exchange of short-term investments	(290)	(3,444)	0
Other	2,457	(60)	(500)
Changes in assets and liabilities, net of business acquired:
Accounts receivable	(39,737)	10,888	14,006
Prepaid expenses and other assets	10,344	(17,651)	3,565
Accounts payable	923	724	(97)
Accrued and other liabilities	1,693	4,631	6,930
Deferred revenue	14,654	(21,284)	(1,634)
Net cash provided by operating activities	187,256	173,223	191,469
Investing activities
Purchases of investments	(70,980)	(273,853)	(224,548)
Maturities of investments	60,143	254,360	174,650
Sales of investments	145,925	21,650	0
Business acquisition, net of cash acquired	(228,452)	(425)	(2,286)
Decrease in restricted cash	298	247	143
Purchases of property and equipment	(3,667)	(2,163)	(1,511)
Acquisitions of patent assets	(116,742)	(132,834)	(136,968)
Deposit for acquisition of patent assets	0	0	(25,000)
Proceeds from sale of patent assets	0	650	1,086
Acquisition of other assets	0	(2,500)	0
Net cash used in investing activities	(213,475)	(134,868)	(214,434)
Financing activities
Repayments of principal on deferred payment obligations	0	(2,935)	0
Proceeds from deferred payment obligations	0	6,270	0
Proceeds from issuance of term debt	100,000	0	0
Payment of debt issuance costs	(2,003)	0	0
Repayment of principal on term debt	(3,750)	0	0
Deferred acquisition payment	(1,320)	0	0
Proceeds from exercise of stock options	3,766	4,953	3,159
Taxes paid related to net-share settlements of restricted stock units	(4,185)	(5,097)	(4,928)
Excess tax benefit from stock-based compensation	103	1,593	2,598
Payments of capital leases	(461)	0	0
Repurchase of common stock	(60,101)	(26,175)	0
Net cash provided by (used in) financing activities	32,049	(21,391)	829
Foreign-currency effect on cash and cash equivalents	(702)	0	0
Net increase (decrease) in cash and cash equivalents	5,128	16,964	(22,136)
Cash and cash equivalents at beginning of period	94,983	78,019
Cash and cash equivalents at end of period	100,111	94,983	78,019
Supplemental disclosures of cash flow information
Cash paid for interest	2,571	0	0
Cash paid for income taxes	15,078	23,969	15,066
Non-cash investing and financing activities
Change in patent assets purchased and accrued but not paid	(333)	0	(500)
Change in fixed assets purchased and accrued but not paid	(565)	0	(166)
Change in other assets purchased and accrued but not paid	0	0	(63)
Patent assets and intangible assets received in barter transactions	381	2,203	0
Nonmonetary exchange for investments	0	5,935	0
Issuance of common stock related to business acquisition	0	0	3,156
Unpaid cash consideration for business acquisition	$ 0	$ 0	$ 425

Nature of Business	12 Months Ended
Nature of Business	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature Of Business	Nature of Business RPX Corporation (also referred to herein as “RPX” or the “Company”) helps companies reduce patent litigation risk and corporate legal expense through two primary service offerings: its patent risk management services and its discovery services. The Company's patent risk management services help companies reduce patent-related risk and expense through subscription-based patent risk management services that facilitate more efficient exchanges of value between owners and users of patents compared to transactions driven by actual or threatened litigation. The core of the Company’s patent risk management services is defensive patent aggregation, in which it acquires patents or licenses to patents that are being or may be asserted against the Company’s 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 Company’s patent risk management 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 small number of clients. In these instances, the Company facilitates syndicated transactions that include cash contributions from participating clients in addition to their annual subscription fees. In addition to its subscription-based patent risk management services, the Company underwrites patent infringement liability insurance policies to insure against certain costs of litigation. The Company uses a reinsurance subsidiary company to assume a portion of the underwriting risk on the insurance policies that the Company issues on behalf of a Lloyd's of London underwriting syndicate. As of and for the years ended December 31, 2016, 2015, and 2014, the effect of the insurance policies that the Company has issued or assumed through its reinsurance business was not material to the Company’s results of operations, financial condition, or cash flows. In January 2016, the Company acquired Inventus Solutions, Inc. ("Inventus"), now a wholly owned subsidiary of the Company, and began offering its discovery services which provides technology-enabled services to assist law firms and corporate legal departments manage costs and risks related to the litigation discovery process. The Company's discovery services include data hosting and backup, data processing and collection, project management, document review, and traditional document production. All of these services are designed to streamline the administration of litigation, investigations, and regulatory compliance.

Basis of Presentation and Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis Of Presentation And Significant Accounting Policies

Basis of Presentation and Significant Accounting Policies

Basis of Presentation

These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of RPX and its wholly owned subsidiaries. All intercompany transactions have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, contingent assets and liabilities, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period covered by the consolidated financial statements and accompanying notes. The Company bases its estimates on various factors and information which may include, but are not limited to, history and prior experience, expected future results, new related events and current economic conditions, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from those estimates.

Significant estimates and assumptions made by management include the determination of:


•	the estimated economic useful lives of patent assets;


•	the determination of a best estimated selling price of a subscription and patent infringement liability insurance;


•	the fair value of assets acquired and liabilities assumed for business combinations;


•	the assumptions and methods used in deriving the fair value of goodwill and intangible assets;


•	recognition and measurement of current and deferred income taxes, any related valuation allowances, and uncertain tax positions;


•	the fair value of stock awards issued;


•	the assumptions and methods used in deriving the fair value of deferred payment obligations;


•	the estimated reserves for known and incurred but not reported claims; and


•	trade receivable allowance for doubtful accounts.

Revenue Recognition

The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 605, Revenue Recognition (“ASC 605”) and related authoritative guidance.

Patent Risk Management

The primary source of the Company's revenue from its patent risk management services offering is fees paid by its clients under subscription agreements. The Company believes that the subscription component of its patent risk management service offering comprises a single deliverable and thus it recognizes each subscription fee ratably over the period for which the fee applies. Revenue is recognized net of any discounts or other contractual incentives. The Company starts recognizing revenue when all of the following criteria have been met:


•	Persuasive evidence of an arrangement exists. All subscription fees are supported by an executed subscription agreement.

•

Delivery has occurred or services have been rendered. The subscription agreement calls for the Company to provide its patent risk management services over a specific term commencing on the agreement effective date. Because services are not on an individualized basis (i.e., the Company generally performs its services on behalf of all of its clients as opposed to each client individually), delivery occurs automatically with the passage of time. Consequently, the Company recognizes subscription revenue ratably.

•

Seller’s price to the buyer is fixed or determinable. Each client’s annual subscription fee is typically based on a rate card in effect at the time of the client’s initial agreement. A client’s subscription fee is generally determined using its rate card and its normalized operating income, which is defined as the greater of (i) the average of its operating income for the three most recently reported fiscal years and (ii) 5% of its revenue for the most recently reported fiscal year. The fee for the first year of the agreement is typically determined and invoiced at the time of contract execution. The fee for each subsequent year of the agreement is generally calculated and invoiced in advance prior to each anniversary date of the agreement.


•	Collectability is reasonably assured. Subscription fees are generally collected on or near the effective date of the agreement and again at or near each anniversary date thereof. The Company does not recognize revenue in instances where collectability is not reasonably assured. Generally, the Company's subscription agreements state that all fees paid are non-refundable.

In some limited instances, the subscription agreement includes a contingency clause, giving one or both parties an option to terminate the agreement and receive a full refund if contingencies are not resolved within a defined time period. In those instances, revenue will not be recognized until the contingency has been satisfied. The revenue earned during the period between the effective date of the agreement and the contingency removal date is recognized on the contingency removal date. Thereafter, revenue is recognized ratably over the remaining subscription term.

The Company's patent risk management clients generally receive a term license to, and a release from all prior damages associated with, patent assets in the Company's portfolio. The term license to each patent asset typically converts to a perpetual license at the end of a contractually specified vesting period, provided that the client is a member at such time. The Company does not view the conversion from term license to perpetual license to be a separate deliverable in its arrangements with its clients because the utility of, access to and freedom to practice the inventions covered by the patent asset is no different between a term and perpetual license.

In some instances, the Company accepts a payment from a client to finance part or all of a patent asset acquisition. We refer to such transactions as syndicated acquisitions. The accounting for syndicated acquisitions can be complex and often requires judgments on the part of management as to the appropriate accounting treatment. In accordance with ASC 605-45, Revenue Recognition: Principal Agent Considerations, in instances where the Company substantively acts as an agent to acquire patent rights from a seller on behalf of clients who are paying for such rights separately from their subscription agreements, the Company may treat the client payments on a net basis. When treated on a net basis, there may be little or no revenue recognized for such contributions, and the basis of the acquired patent rights may exclude the amounts paid by the contributing client based on our determination that the Company is not the principal in these transactions. In these situations, where the Company substantively acts as an agent, the contributing clients are typically defendants in an active or threatened patent infringement litigation filed by the owner of a patent. The Company's involvement is to assist our clients to secure a dismissal from litigation and a license to the underlying patents.

Key indicators evaluated to determine the Company's role as either principal or agent in the transaction include, among others:


•	the entity to grant the license of the patent(s) is generally viewed as the primary obligor in the arrangement, given that it owns and controls the underlying patent(s) and thus has the absolute authority to grant and deliver any release from past damages and dismissal from litigation, and typically determines the general terms of the license(s) granted;


•	the Company generally does not have any inventory risk, as its clients often enter into contractual obligations with the Company prior to or contemporaneous to the Company entering into a contractual obligation with the seller;


•	the Company has pricing latitude as it negotiates client contributions, however, this latitude is often limited as the economics of the transaction ultimately depend on the sales price set by the seller;


•	the Company is not involved in the determination of the product or service specification and has no ability to change the product or perform any part of the service in connection with these transactions, as the seller owns the underlying patent(s); and


•	the Company has limited or no credit risk, as each respective client has a contractually binding obligation, such clients are generally of high credit quality and in some instances, the Company collects the client contribution prior to making a payment to the seller.

In certain syndicated transactions, the Company may recognize revenue upon the sale of licenses to specific patent assets and/or upon completion of the rendering of advisory services.

Revenue recognition for arrangements with multiple deliverables. A multiple-element arrangement may include the sale of a subscription to the Company's patent risk management services and an insurance policy to cover certain costs associated with patent infringement litigation, each of which are individually considered separate units of accounting. Each element within a multiple-element arrangement is accounted for as a separate unit of accounting given that the delivered products have value to the customer on a standalone basis. The Company considers a deliverable to have standalone value if the product or service is sold separately by us or another vendor. The delivery of insurance coverage is not dependent on a client’s subscription to the Company's patent risk management services. While the Company believes its insurance product offering is unique, its clients are able to purchase insurance coverage as a standalone product from other providers. The Company sells the components of its patent risk management services on a standalone basis.

Multiple deliverables included in an arrangement are separated into different units of accounting and the arrangement consideration is allocated to the identified separate units based on a relative selling price hierarchy. The Company determines the relative selling price for a deliverable based on its best estimate of selling price ("BESP") for its patent risk management services. The Company has determined that vendor-specific objective evidence ("VSOE") and third-party evidence ("TPE") are not available for its patent risk management deliverables.

The Company has determined its BESP for a subscription to our patent risk management services based on the following:

•

List price, which represents the rates listed on our annual rate card. The Company publishes a standard rate card annually. Each client’s subscription fee is typically calculated using the applicable rate card and its normalized operating income, which is defined as the greater of (i) 5% of the client’s most recently reported fiscal year’s revenue, and (ii) the average of the three most recently reported fiscal years’ operating income of the client. Each client’s annual subscription fee is reset annually based on its normalized operating income for its most recently completed fiscal years.

The Company has determined its BESP for its insurance product based on the following:

•

Actuarially determined factors. Although the Company sells its insurance product both on a standalone basis and as a component of a multiple-element arrangement, the pricing is not affected by the subscription to our patent risk management services. The Company uses an actuarial model that calculates an individual client’s insurance premium based on its projected annual frequency (i.e., number of claims during the policy term) and severity (i.e., the amount which it expects to settle a claim).

Discovery Services

Revenue from the Company's discovery services is primarily generated from the following:


•	data hosting fees based on data stored and number of users;


•	fees for month-to-month delivery of services, such as data processing (conversion of data into organized, searchable electronic database), project management and data collection services;


•	document review services which assist clients in the manual review of data responsive to a legal matter; and


•	printing and binding services (paper-based services).

The Company enters into agreements pursuant to which the Company offers various discovery services. Clients are generally billed monthly based on contractual unit prices and volumes for services delivered. The agreements are typically for an indefinite period of time, however, they are cancelable at will by either party. The Company is entitled to all fees incurred for services performed. The majority of the Company's discovery services revenue comes from two types of billing arrangements: usage based and fixed fee.

Usage-based arrangements require the client to pay based upon predetermined unit prices and volumes for data hosing, data processing and paper-based services. Project management and review hours are billed based upon the number of hours worked by certain client service professionals at agreed upon rates.

In fixed-fee billing arrangements, the Company agrees to a pre-established monthly fee over a specified term in exchange for various services. The fees are not tied to the attainment of any contractually defined objectives and the monthly fee is nonrefundable.

Based on an evaluation of the discovery services delivered to each client, the Company has determined that each deliverable has stand-alone value to the client as each of the Company’s discovery services can be sold on a stand-alone basis by the Company and the discovery services are available from other vendors. Additionally, discovery services do not carry a significant degree of risk or unique acceptance criteria that would require a dependency on the performance of future services. The Company recognizes revenue from these arrangements based on contractually stated prices. The Company allocates revenue to the various units of accounting in its arrangements based on the best estimate of selling price for each unit of accounting, which are consistent with the stated prices in those arrangements.

Based on an evaluation of the discovery services delivered to each client, the Company determined each deliverable has stand-alone value to the client as each of its discovery services can be sold on a stand-alone basis by the Company and the discovery services are available from other vendors. Additionally, discovery services do not carry a significant degree of risk or unique acceptance criteria that would require a dependency on the performance of future services.

The Company determines the relative selling price for a discovery services deliverable based on its VSOE, if available, or its BESP, if VSOE is not available. The Company has determined that TPE is not a practical alternative due to differences in its service offerings compared to other parties and the availability of relevant third-party pricing information. The Company allocates revenue to the various units of accounting in its arrangements based on the best estimate of selling price for each unit of accounting, which are consistent with the stated prices in those arrangements.

The Company’s discovery services arrangements do not include any substantive general rights of return or other contingencies.

Sales and value added taxes collected from clients are not considered revenue and are included in accrued liabilities in the Company's consolidated balance sheets until remitted to the taxing authorities.

Accounting for Payments to Clients

The Company occasionally agrees to provide payments, discounts or other contractual incentives to clients in exchange for specified consideration. The Company accounts for such contract provisions in accordance with ASC 605-50, Revenue Recognition: Customer Payments and Incentives, which requires the Company to offset the amount of the payment, discount or other contractual incentive against revenue if the Company is unable to demonstrate both receipt of an identifiable benefit and determine the fair value of the benefit received.

Deferred Revenue

The Company generally invoices its patent risk management clients upon execution of a new agreement and prior to their anniversary date for existing agreements. The Company records the amount of fees billed as deferred revenue and recognizes such amounts as revenue ratably over the period for which they apply. The Company typically records deferred revenue when it has the legal right to bill amounts owed and the applicable service period has commenced. In an instance where a term has commenced but the fees have not yet been invoiced, the Company records an unbilled receivable. Deferred revenue that will be recognized during the succeeding 12-month period from the respective balance sheet date is recorded as deferred revenue, current, and the remaining portion is recorded as non-current.

Accounts Receivable

Accounts receivable are recorded at the invoiced amount and are non-interest bearing. The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivables. The allowance for doubtful accounts is based on the expected ability to collect accounts receivable. The Company reviews accounts receivable to identify amounts due from clients which are past due to identify specific clients with known disputes or collectability issues. In determining the allowance for doubtful accounts, the Company makes judgments about the creditworthiness of significant customers based on ongoing credit evaluations. The Company's allowance for doubtful accounts was $0.9 million and nil as of December 31, 2016 and 2015, respectively.

Concentration of Risk

The Company is subject to concentrations of credit risk principally attributable to cash, cash equivalents, investments, accounts receivable and other receivables. The Company’s non-restricted cash balances deposited in U.S. banks are non-interest bearing and are insured up to the Federal Deposit Insurance Corporation (“FDIC”) limits. Cash equivalents primarily consist of institutional money market funds and municipal bonds denominated primarily in U.S. dollars. Investment policies have been implemented that limit purchases of debt securities to investment-grade securities.

As of December 31, 2016, one client individually accounted for 39% of accounts receivable. Three clients individually accounted for 32%, 18%, and 14% of accounts receivables at December 31, 2015. No client accounted for 10% or more of revenue in any of the years ended December 31, 2016, 2015 or 2014.

Fair Value Measurements

The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

Level 1 – Valuations based on quoted prices in active markets for identical assets or liabilities and readily accessible by the Company at the reporting date.

Level 2 – Valuations based on inputs other than quoted prices included within Level 1 that are observable for assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument.

Level 3 – Valuations based on inputs that are unobservable.

The carrying amounts of the Company’s financial instruments, which include cash equivalents, short-term investments, accounts receivable, other receivables and accounts payable, approximate their fair values due to their short maturities. The carrying amounts of the Company's deferred payment obligations held as of December 31, 2015 were valued using Level 3 valuation techniques which approximate fair value.

Cash and Cash Equivalents

The Company’s cash and cash equivalents principally consist of institutional money market funds and municipal bonds denominated primarily in U.S. dollars. Cash equivalents are highly liquid, short-term investments having an original maturity of 90 days or less that are readily convertible to known amounts of cash.

Restricted Cash

Restricted cash consists primarily of certificates of deposit established as collateral for the Company’s office lease agreements as well as amounts held in trust. At December 31, 2016 and 2015, the Company had restricted cash (current and non-current) of $1.5 million and $1.4 million, respectively.

Short-Term Investments

The Company holds short-term investments in municipal and corporate bonds primarily maturing between 90 days and 12 months, commercial paper, U.S. government and agency securities, and equity securities. The Company considers its investments as available to support current operations. As a result, the Company classifies its investments, including those with stated maturities beyond twelve months, as current assets in the accompanying consolidated balance sheets. The Company primarily classifies these securities as “available-for-sale” and carries them at fair value in the consolidated balance sheets. Unrealized gains or losses are recorded, net of estimated taxes, in accumulated other comprehensive income (loss), a component of stockholders’ equity. Realized gains and losses are recognized upon sale or exchange. The specific identification method is used to determine the cost basis of fixed income securities sold.

The Company periodically evaluates its investments for impairment due to declines in market value considered to be “other-than-temporary.” This evaluation consists of several qualitative and quantitative factors, including the Company’s ability and intent to hold the investment until a forecasted recovery occurs, as well as any decline in the investment quality of the security and the severity and duration of the unrealized loss. In the event of a determination that a decline in market value is other-than-temporary, the Company will recognize an impairment loss, and a new cost basis in the investment will be established. During the years ended December 31, 2016 and 2015, the Company recorded an other-than-temporary impairment on its short-term investments of nil and $5.1 million, respectively, in its consolidated statements of operations within other expense, net.

Property and Equipment, Net

Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using a straight-line method over the estimated useful lives of the related assets, which are generally three to five years. Maintenance and repairs are charged to expense as incurred, and improvements and betterments are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the consolidated balance sheet and any resulting gain or loss is reflected in the consolidated statement of operations in the period realized. Leasehold improvements are amortized on a straight-line basis over the term of the lease, or the useful life of the assets, whichever is shorter.

Internal-Use Software and Website Development Costs

The Company capitalizes development costs related to internal-use software and its website and records such amounts as property and equipment, net, in its consolidated balance sheets. These costs include personnel-related expenses and consultant fees incurred during the application development stages of the project. Costs related to preliminary project activities, minor enhancement and maintenance, and post implementation activities are expensed as incurred. Internal-use software is amortized on a straight-line basis over its useful life, which is generally three years, beginning on the date the software is placed into service. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets.

During the years ended December 31, 2016, 2015 and 2014, the Company capitalized $1.3 million, $2.3 million, and $1.2 million, respectively, of internal-use software and website development costs. Amortization of internal-use software was $1.5 million, $1.1 million, $1.3 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Patent Assets, Net

The Company generally acquires patent assets from third parties using cash. Patent assets are recorded at fair value at acquisition. The fair value of the assets acquired is generally based on the fair value of the consideration exchanged. The asset value includes the cost of external legal and other fees associated with the acquisition of the assets. Costs incurred to maintain and prosecute patents and patent applications are expensed as incurred.

Because each client generally receives a license to the majority of the Company’s patent assets, the Company is unable to reliably determine the pattern over which its patent assets are consumed. As a result, the Company amortizes each patent asset on a straight-line basis. The amortization period is equal to the asset’s estimated economic useful life. Estimating the economic useful life of patent assets requires significant management judgment. The Company considers various factors in estimating the economic useful lives of its patent assets, including the remaining statutory life of the underlying patents, the applicability of the assets to future clients, the vesting period for current clients to obtain perpetual licenses to such patent assets, any contractual commitments by clients that are related to such patent assets, its estimate of the period of time during which the Company may sign subscription agreements with prospective clients that may find relevance in the patent assets, and the remaining contractual term of the Company’s existing clients at the time of acquisition. In certain instances, where the Company acquires patent assets and secures related client committed cash flows that extend beyond the statutory life of the underlying patent assets, the useful life may extend beyond the statutory life of the patent assets. As of December 31, 2016, the estimated economic useful life of the Company’s patent assets generally ranged from 24 to 60 months. The weighted-average estimated economic useful life of patent assets acquired since inception was 41 months. The weighted-average estimated economic useful life of patent assets acquired during the year ended December 31, 2016 was 27 months. The Company periodically evaluates whether events and circumstances have occurred that may warrant a revision to the remaining estimated useful life of its patent assets.

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 small number of clients. In these instances, the Company facilitates syndicated transactions that include cash contributions from participating clients in addition to their annual subscription fees.

In instances where the Company sells patent assets, the amount of consideration received is compared to the asset’s carrying value to determine and recognize a gain or loss, which is recorded within Gain on sale of patent assets, net in the Company's consolidated statements of operations.

Impairment of Long-Lived Assets

The Company assesses the recoverability of its long-lived assets, which includes patent assets, other intangible assets and property and equipment, when events or changes in circumstances indicate their carrying value may not be recoverable. Such events or changes in circumstances may include: a significant adverse change in the extent or manner in which a long-lived asset is being used, a significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset, an accumulation of costs significantly in excess of the amount originally expected for the acquisition or development of a long-lived asset, current or future operating or cash flow losses that demonstrate continuing losses associated with the use of a long-lived asset or a current expectation that, more-likely-than-not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The Company licenses a majority of the portfolio of patent assets to all of its membership clients and thus views these assets as a single asset group. The Company assesses recoverability of a long-lived asset by determining whether the carrying value of these assets can be recovered through projected undiscounted cash flows. If the carrying value of the assets exceeds the forecasted undiscounted cash flows, an impairment loss is recognized, and is recorded as the amount by which the carrying value exceeds the estimated fair value. An impairment loss is charged to operations in the period in which management determines such impairment. To date, there have been no impairments of long-lived assets identified.

Goodwill

The Company reviews goodwill for impairment annually or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. For the year ended December 31, 2016, the Company used both the qualitative assessment and the two-step goodwill impairment test to assess whether or not the goodwill of its reporting units was impaired under ASC Topic 350, Intangibles - Goodwill & Other (“ASC Topic 350”), issued by the FASB. A company may first assess the qualitative factors to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment. If the two-step goodwill impairment test is performed, the first step in identifying a potential impairment compares the fair value of the reporting unit with its carrying amount. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired clients, acquired technology, and trade names from a market participant perspective, useful lives, and discount rates. If the carrying amount of a reporting unit exceeds its fair value, the second step would need to be performed; otherwise, no further step is required. The second step, measuring the impairment loss, compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. Any excess of the goodwill carrying amount over the implied fair value is recognized as an impairment charge, and the carrying value of goodwill is written down to fair value.

No impairment charges were recorded as a result of the Company’s 2016, 2015, and 2014 annual impairment analyses.

Intangible Assets, Net

Intangible assets, net primarily consists of intangible assets acquired through business combinations. Such assets are capitalized and amortized on a straight-line basis over their estimated useful lives. Intangible assets, net excludes patent related intangible assets, which are recorded within patent assets, net in the consolidated balance sheets.

Advertising Costs

The Company expenses advertising costs as they are incurred. Advertising expenses were not material for any of the periods presented.

Foreign Currency Accounting

The functional currencies of the Company’s international subsidiaries are the U.S. dollar and British pound sterling. The Company's primary foreign subsidiary uses the local currency of its respective country as its functional currency. Assets and liabilities are translated into U.S. dollars using exchange rates prevailing at the balance sheet date, while revenues and expenses are translated at average exchange rates during the year. Gains and losses resulting from the translation of our consolidated balance sheet are recorded as a component of accumulated other comprehensive income (loss).

Gains and losses from foreign currency transactions are recognized in other expense, net in the consolidated statements of operations.

Income Taxes

The Company accounts for income taxes using an asset and liability approach, which requires the recognition of deferred tax assets or liabilities for the tax-effected temporary differences between the financial reporting and tax bases of its assets and liabilities and for net operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized.

The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income, and to the extent the Company believes that recovery is not likely, the Company establishes a valuation allowance. Judgment is required in determining the Company’s provision for income taxes, deferred tax assets and liabilities, and any valuation allowance recorded against the net deferred tax assets. The Company applied a valuation allowance of $0.9 million and $1.1 million against its deferred tax balances at December 31, 2016 and 2015, respectively.

The calculation of the Company’s tax liabilities involves uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions across its global operations. ASC 740, Income Taxes (“ASC 740”) provides that a tax benefit from an uncertain tax position may be recognized when it is more-likely-than-not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, on the basis of the technical merits. ASC 740 also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

The Company recognizes tax liabilities in accordance with ASC 740 and adjusts these liabilities when its judgment changes as a result of the evaluation of new information not previously available. Because of the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from its current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which new information is available.

The tax expense or benefit for extraordinary items, unusual or infrequently occurring items and items that do not represent a tax effect of current-year ordinary income are treated as discrete items and recorded in the interim period in which the events occur.

Stock-Based Compensation

The Company accounts for stock-based compensation for equity-settled awards issued to employees and directors under ASC 718, Compensation-Stock Compensation (“ASC 718”). ASC 718 requires that stock-based compensation expense for equity-settled awards made to employees and directors be measured based on the estimated grant date fair value and recognized over the requisite service period. These equity-settled awards include stock options, restricted stock units (“RSUs”) and performance-based RSUs which include a service condition, some of which also include a market condition or performance condition (“PBRSUs”).

The fair value of stock options is estimated as of the date of grant using the Black-Scholes option-pricing model. The fair value of RSUs is estimated based on the fair market value of the Company’s common stock on the date of grant. For stock options and RSUs, the fair value of award that is expected to vest is recognized as compensation expense on a straight-line basis over the requisite service period. Because stock-based compensation expense is based on awards ultimately expected to vest, it reflects estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. Previously recognized expense is reversed for the portion of awards forfeited prior to vesting.

The fair value of PBRSUs that include performance conditions is estimated by reference to the fair value of the underlying shares on the date of grant. The fair value of PBRSUs that include market conditions is estimated as of the date of grant using the Monte-Carlo simulation model. Stock-based compensation expense for PBRSUs is recognized over the derived service period for each tranche (or market or performance condition). Because the Company’s PBRSUs have multiple derived service periods, it uses the graded-vesting attribution method. The graded vesting attribution method requires a company to recognize compensation expense over the requisite service period for each vesting tranche of the award as though the award were, in substance, multiple awards. The compensation expense for PBRSUs with market conditions will only be reversible if the employee terminates prior to completing the requisite service periods for these awards (i.e., compensation expense will not be reversed if the market condition is not met). For PBRSUs that include performance conditions, the Company only recognizes compensation expense for those awards which vesting is determined to be probable upon satisfaction of certain performance criteria.

Estimates of the fair value of equity-settled awards as of the grant date using valuation models, such as the Black-Scholes option-pricing model and a Monte-Carlo simulation model, are affected by assumptions regarding a number of complex variables. Changes in the assumptions can materially affect the fair value and ultimately how much stock-based compensation expense is recognized. These inputs are subjective and generally require significant analysis and judgment to develop. For all stock options granted to date, the Company calculated the expected term using the SEC simplified method. The Company had limited information on its past volatility and had a limited operating history. Therefore, it had estimated the volatility data based on a study of publicly traded industry peer companies. For purposes of identifying these peer companies, the Company considered the industry, stage of development, size and financial leverage of potential comparable companies. As of the second quarter of 2014, the Company concluded that it had obtained sufficient historical information and, accordingly, ceased use of calculating the expected term using the SEC simplified method and estimated volatility based on peer companies. Starting the third quarter of 2014, the Company's expected term calculation is based on historical exercise patterns and post-vesting termination behavior. Volatility is calculated based on the implied volatility of the Company's publicly traded stock. The Company has not granted any stock options since making these changes. The risk-free interest rate is based on the yield available on U.S. Treasury zero-coupon issues similar in duration to the expected term of the equity-settled award.

Business Combinations

The Company applies the provisions of ASC 805, Business Combinations (“ASC 805”), in the accounting for its business acquisitions. ASC 805 requires companies to recognize goodwill separately from the assets acquired and liabilities assumed, which are valued at their acquisition date fair values. Goodwill as of the acquisition date represents the excess of the purchase price over the fair values of the assets acquired and the liabilities assumed.

The Company uses significant estimates and assumptions, including fair value estimates, to determine fair value of assets acquired, liabilities assumed and, when applicable, the related useful lives of the acquired assets, as of the business combination date. When those estimates are provisional, the Company refines them as necessary during the measurement period. The measurement period is the period after the acquisition date, not to exceed one year, in which the Company may gather new information about facts and circumstances that existed as of the acquisition date to adjust the provisional amounts recognized. Measurement period adjustments are applied retrospectively. All other adjustments are recorded in the consolidated statements of operations.

Reserves for Known and Incurred but not Reported Claims

Reserves for known and incurred but not reported claims represent estimated claims costs and related expenses for patent infringement liability insurance policies in effect. Reserves for known claims are established based on individual case estimates. The Company uses actuarial models and techniques to estimate the reserve for incurred but not reported claims.

Loss expense for known and incurred but not reported claims are charged to earnings after deducting recoverable amounts under our reinsurance contract. Loss expense for known and incurred but not reported claims associated with policies that the Company issued on behalf of a Lloyd's of London underwriting syndicate are charged to earnings for the portion of the underwriting risk that the Company assumes.

Recent Accounting Pronouncements

In November 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-18, Statement of Cash Flows: Restricted Cash ("ASU 2016-18"). The standard addresses the diversity in practice that exists in the classification and presentation of changes in restricted cash and requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 is effective retrospectively for fiscal years and interim periods within those years beginning after December 15, 2017. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In October 2016, the FASB issued ASU No. 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other than Inventory which removes the prohibition against the recognition of current and deferred income tax effects of intra-entity transfers of assets other than inventory until the asset has been sold to an outside party. This ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2017. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). The standard is intended to eliminate diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 will be effective for fiscal years beginning after December 15, 2017. Early adoption is permitted for all entities. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments -- Credit Losses ("ASU 2016-13") on measurement of credit losses on financial instruments. This ASU requires financial assets measured at amortized cost to be presented at the net amount expected to be collected and available-for-sale debt securities to record credit losses through an allowance for credit losses. ASU 2016-13 will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted as early as of the fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). This ASU affects entities that issue share-based payment awards to their employees. ASU 2016-09 is designed to simplify several aspects of accounting for share-based payment award transactions that include the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows, and forfeiture rate calculations. ASU 2016-09 will become effective for annual and interim periods beginning after December 15, 2016 and early adoption is permitted in any interim or annual period. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In February 2016 the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The new standard is effective for interim and annual periods beginning after December 15, 2018 and early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"), which amends guidance related to certain aspects of the recognition, measurement, presentation, and disclosure of financial instruments. This update is effective for fiscal years beginning after December 15, 2018, and interim periods in those years. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which will supersede most existing revenue recognition guidance in U.S. GAAP once it becomes effective. ASU 2014-09 requires an entity to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. Entities have the option of using either a full retrospective or modified retrospective approach to adopt the new standards. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance for gross versus net considerations in ASU 2014-09. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which amends the guidance in ASU 2014-09 related to identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which provides clarification on assessing the collectability criterion, presentation of sales taxes, measurement date for noncash consideration, and completed contracts at transition. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which provides various technical corrections and clarifications to ASU 2014-09. All of these aforementioned ASUs will be effective for annual and interim periods beginning after December 15, 2017 and early adoption is permitted for annual and interim periods beginning after December 15, 2016. The Company expects to complete its assessment process, including identifying its performance obligations and selecting a transition method for adoption, by the end of the second quarter of 2017 along with its implementation process prior to the adoption of this ASU on January 1, 2018.

Net Income Available to Common Stockholders

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Net Income Available to Common Stockholders

Net Income Per Share

Basic and diluted net income per share are computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by using the weighted-average number of shares of common stock outstanding during the period, including potentially dilutive shares. Potentially dilutive shares include outstanding stock options, RSUs, and PBRSUs. The dilutive effect of potentially dilutive shares is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair value of the Company's common stock can result in a greater dilutive effect from potentially dilutive shares.

The following table presents the calculation of basic and diluted net income per share (in thousands, except for per share data):



	Year Ended December 31,
	2016		2015		2014
Net income per share:
Numerator:
Net income	$	18,235	$	39,422	$	39,341
Denominator:
Basic shares:
Weighted-average shares used in computing basic net income per share	50,462		54,432		53,444
Diluted shares:
Weighted-average shares used in computing basic net income per share	50,462		54,432		53,444
Dilutive effect of stock options and restricted stock units using treasury-stock method	539		978		1,374
Weighted-average shares used in computing diluted net income per share	51,001		55,410		54,818
Net income per share:
Basic	$	0.36	$	0.72	$	0.74
Diluted	$	0.36	$	0.71	$	0.72

For the years ended December 31, 2016, 2015 and 2014 the following securities were not included in the calculation of diluted shares outstanding, as the effect would have been anti-dilutive (in thousands):



	Year Ended December 31,
	2016	2015	2014
Weighted-average:
Stock options outstanding	—	663	767
Restricted stock units outstanding	2	263	100

Financial Instruments

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Financial Instruments

The following tables present the Company's financial assets and liabilities measured at fair value on a recurring basis (in thousands):



	December 31, 2016
	Amortized Cost		Unrealized					Estimated Fair Value		Level 1		Level 2		Level 3
	Amortized Cost		Gains		Losses			Estimated Fair Value		Level 1		Level 2		Level 3
Assets:
Cash equivalents:
Money market funds	$	30,286	$	—	$	—		$	30,286	$	30,286	$	—	$	—
Municipal bonds	3,070		—		—			3,070		—		3,070		—
	$	33,356	$	—	$	—		$	33,356	$	30,286	$	3,070	$	—
Short-term investments:
Commercial paper	$	4,296	$	—	$	(3	)	$	4,293	$	—	$	4,293	$	—
Corporate bonds	10,856		—		(13		)	10,843		—		10,843		—
Equity securities	123		—		(78		)	45		45		—		—
Municipal bonds	55,723		—		(65		)	55,658		—		55,658		—
U.S. government and agency securities	20,033		9		(4		)	20,038		20,038		—		—
	$	91,031	$	9	$	(163	)	$	90,877	$	20,083	$	70,794	$	—



	December 31, 2015
	Amortized Cost		Unrealized					Estimated Fair Value		Level 1		Level 2		Level 3
	Amortized Cost		Gains		Losses			Estimated Fair Value		Level 1		Level 2		Level 3
Assets:
Cash equivalents:
Commercial paper	$	7,997	$	—	$	—		$	7,997	$	—	$	7,997	$	—
Municipal bonds	1,635		—		—			1,635		—		1,635		—
Money market funds	54,663		—		—			54,663		54,663		—		—
	$	64,295	$	—	$	—		$	64,295	$	54,663	$	9,632	$	—
Short-term investments:
Municipal bonds	$	133,033	$	—	$	(96	)	$	132,937	$	—	$	132,937	$	—
Commercial paper	5,493		—		(3		)	5,490		—		5,490		—
Corporate bonds	30,488		3		(93		)	30,398		—		30,398		—
Equity securities	123		—		—			123		123		—		—
U.S. government and agency securities	61,559		—		(62		)	61,497		—		61,497		—
	$	230,696	$	3	$	(254	)	$	230,445	$	123	$	230,322	$	—
Liabilities:
Current liabilities:
Deferred payment obligations	$	6,270	$	3,887	$	—		$	2,383	$	—	$	—	$	2,383

The Company's financial investments are generally classified as available-for-sale. Available-for-sale securities are reported at fair value, with unrealized gains and losses, net of tax, included as a separate component of stockholders’ equity within accumulated other comprehensive income (loss). During the years ended December 31, 2016, 2015, 2014, the Company realized losses on the sales and exchanges of short-term investments of $0.3 million, $3.4 million, and nil, respectively, and other-than-temporary impairments on its short-term investments of nil, $5.1 million, and nil, respectively, which are included in the consolidated statements of operations within other expense, net.

As of December 31, 2016 and 2015, approximately 96% and 87%, respectively, of our marketable security investments mature within one year and 4% and 13%, respectively, mature within one to five years. As of December 31, 2016, no individual securities incurred continuous unrealized losses for greater than 12 months.

As of December 31, 2016 and 2015, the Company had short-term cost method investments of nil and $0.6 million, respectively. Cost method investments are recorded at amortized cost in short-term investments in the Company's consolidated balance sheets.

In connection with the Rockstar Transaction (see Note 12, "Commitments and Contingencies"), the Company received funding of $6.3 million from a syndicate participant which the Company settled during the year ended December 31, 2016.

Level 3 Valuation Techniques

Level 3 financial liabilities as of December 31, 2015 consisted of a repayment obligation to a third party for which determination of fair value required significant judgment and estimation. Balances categorized within Level 3 of the fair value hierarchy were analyzed each period for changes in estimates or assumptions and recorded as the Company deemed appropriate.

As of December 31, 2015, the Company used the Black-Scholes option valuation model to estimate the fair value of the deferred payment obligation entered into in the Rockstar Transaction. This model incorporated assumptions about details such as the value of underlying securities, expected terms, maturity, risk-free interest rates, as well as volatility. A significant change in volatility and expected term could result in a significant change in fair value. The risk-free interest rate was based on the implied yield currently available on U.S. Treasury zero coupon issues with an equivalent remaining term at the measurement date. The expected volatility was calculated using the standard deviation of the underlying security's weekly returns over the estimated period of time to take to settle the liability. The expected term of the liability was determined by the estimated settlement date of the liability. Changes in the fair value were recorded in other expense, net in the Company's consolidated statements of operations. As of December 31, 2016, the Company no longer holds any Level 3 financial assets or liabilities (see Note 12, "Commitments and Contingencies").

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Patent Assets, Net

12 Months Ended

Dec. 31, 2016

Patent Assets [Abstract]

Patent Assets, Net

Patent assets, net consisted of the following (in thousands):



	December 31, 2015			Additions			Disposals			December 31, 2016
Patent assets	$	824,258		$	117,457		$	(9,432	)	$	932,283
Accumulated amortization	(569,698		)	(158,814		)	9,228			(719,284		)
Patent assets, net	$	254,560								$	212,999



	December 31, 2014			Additions			Disposals			December 31, 2015
Patent assets	$	665,290		$	160,664		$	(1,696	)	$	824,258
Accumulated amortization	(428,941		)	(142,296		)	1,539			(569,698		)
Patent assets, net	$	236,349								$	254,560

The Company’s acquired patent assets relate to technologies used or supplied by companies in a variety of market sectors, including consumer electronics, e-commerce, financial services, media distribution, mobile communications, networking, semiconductors, and software. The Company amortizes each acquired portfolio of patent assets on a straight-line basis over its estimated economic useful life. As of December 31, 2016, the estimated economic useful lives of the Company’s patent assets acquired since inception generally ranged from 24 to 60 months with a weighted-average estimated economic useful life at the time of acquisition of 41 months. Patent assets acquired during the year ended December 31, 2016 had a weighted-average estimated economic useful life at the time of acquisition of 27 months.

As of December 31, 2016, the Company expects amortization expense in future periods to be as follows (in thousands):



2017	$	127,088
2018	64,157
2019	18,103
2020	3,651
Total estimated future amortization expense	$	212,999

Amortization expense was $159.0 million, $142.4 million and $119.7 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Syndicated Acquisitions

Syndicated acquisitions are transactions 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 limited number of clients. In such transactions, the Company may work to acquire these assets with financial assistance from the particular clients against whom they are being or may be asserted. Such clients either pay amounts separate from their subscription fee or, less frequently, lend the Company funds to be used in the transaction. As discussed in the revenue recognition policy in Note 2, "Basis of Presentation and Significant Accounting Policies," the Company may treat the contributions from such clients as revenue on a gross or net basis depending on the specific facts and circumstances of the transaction. In the event that such contributions are recognized on a net basis, the Company will only capitalize the acquired asset that relates to its non-contributing clients. As a result, in such situations the cost basis of the acquired patent rights excludes the amounts paid by the contributing clients.

Property and Equipment, Net

12 Months Ended

Dec. 31, 2016

Property and Equipment, Net

Property and Equipment, Net

Property and equipment, net, consisted of the following (in thousands):



	December 31,
	2016			2015
Internal-use software	$	7,827		$	7,654
Leasehold improvements	2,169			1,799
Computer, equipment and software	5,204			1,387
Furniture and fixtures	935			818
Construction-in-progress	183			—
Total property and equipment, gross	16,318			11,658
Less: Accumulated depreciation and amortization	(9,370		)	(6,925		)
Total property and equipment, net	$	6,948		$	4,733

Depreciation and amortization expense was $3.0 million, $1.7 million and $2.0 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Business Combinations

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

Business Combinations

On January 22, 2016, the Company completed its acquisition of all of the issued and outstanding shares of Inventus, to expand into the litigation discovery services market. The final purchase price for Inventus was approximately $232 million, net of working capital adjustments, which the Company paid in January 2016. The following table summarizes the cash paid and the estimated fair values of the assets and the liabilities assumed (in thousands) and the estimated useful lives of the acquired identifiable intangible assets:



	Estimated Fair Value			Estimated useful life
Current assets	$	19,357
Intangible assets:
Customer relationships	58,000			9 - 10 years
Trademarks	3,200			1 - 6 years
Developed technology	6,400			3 years
Goodwill	145,984
Property, plant, equipment and other long term assets	3,347
Deferred tax asset	10,595
Current liabilities	(7,280		)
Deferred tax liability	(5,477		)
Other long term liabilities	(826		)
Cash purchase consideration paid	$	233,300

Intangible assets acquired through the Company's acquisition of Inventus are amortized on a straight-line basis which reflects the pattern in which the economic benefits of the intangible assets are expected to be utilized. The goodwill recorded is primarily attributable to the Company's opportunity to expand into the litigation discovery services market and is not expected to be deductible for tax purposes. For the year ended December 31, 2016, the Company recorded acquisition-related costs of $1.2 million which were expensed as incurred and included in selling, general and administrative expenses in the Company's consolidated statements of operations. The Company has included the financial results of Inventus in its consolidated financial statements which includes revenue of $66.1 million for the year ended December 31, 2016, and operating income of $8.7 million for the year ended December 31, 2016.

The unaudited pro forma financial information in the table below summarizes the combined results of operations for the Company and Inventus as though the companies had been consolidated as of January 1, 2015, and includes the accounting effects resulting from the acquisition including amortization charges from the acquired intangible assets, $13.5 million of transaction costs incurred which were directly attributable to the acquisition of Inventus, and elimination of interest expenses and debt issuance and extinguishment costs associated with Inventus's historical debt which was extinguished upon the Company's acquisition of Inventus. This unaudited pro forma information also adjusts for Inventus's acquisition of London-based Unified OS Limited and certain of its affiliates as well as certain assets of Kooby LLP (collectively, "Unified") as though it had been consolidated as of January 1, 2015. The following unaudited pro forma financial information is for information purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place as of January 1, 2015 (in thousands, except per share data):



	Year Ended December 31,
	2016
Revenue	$	336,047
Net income	$	18,824
Basic net income per share	$	0.37
Diluted net income per share	$	0.37

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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-Section 50
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1524-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4922-128472

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4926-128472

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=73530397&loc=SL65897772-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1383-128463

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479

+ Details

Intangible Assets, Net

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Net

Intangible assets, net, as of December 31, 2016 and 2015 consisted of the following (in thousands, except years):



	December 31, 2016								December 31, 2015
	Weighted-Average Life (years)	Carrying Amount		Accumulated Amortization			Net Carrying Amount		Carrying Amount		Accumulated Amortization			Net Carrying Amount
Proprietary data and models	3.7	$	2,100	$	(2,006	)	$	94	$	2,100	$	(1,694	)	$	406
Trademarks	4.9	4,879		(2,439		)	2,440		1,720		(1,645		)	75
Developed technology	3.0	5,802		(1,978		)	3,824		120		(120		)	—
Customer relationships	9.3	55,719		(6,323		)	49,396		1,050		(659		)	391
Covenant not to compete	3.0	1,900		(1,604		)	296		1,900		(971		)	929
		$	70,400	$	(14,350	)	$	56,050	$	6,890	$	(5,089	)	$	1,801

As of December 31, 2016, the Company expects amortization expense in future periods to be as follows (in thousands):



2017	$	8,744
2018	8,215
2019	6,433
2020	6,321
2021	6,321
Thereafter	20,016
Total estimated future amortization expense	$	56,050

Amortization expense related to intangible assets was $9.6 million, $1.7 million, and $1.5 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Debt

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Debt

On February 26, 2016, the Company entered into a Credit Agreement (the "Credit Agreement") which provided for a $100 million five-year term facility (the "Term Facility") and a $50 million five-year revolving credit facility (the "Revolving Credit Facility"), which remains undrawn as of December 31, 2016. The Term Facility bears interest which is payable quarterly in arrears at the Company's option equal to either a base rate plus a margin ranging from 1.25% to 1.75% per annum or, at the Company's election, the one-, two-, three-, or six-month London interbank offered rate ("LIBOR") plus a margin ranging from 2.25% to 2.75% per annum, based upon the ratio of the Company's debt to consolidated EBITDA ratio. The outstanding balance on the Term Facility bore interest during the year ended December 31, 2016 at an average interest rate of 3.0%, which approximates fair value. The Revolving Credit Facility bears a commitment fee on undrawn balances of 0.35% to 0.45% per annum, also based upon the Company's debt to consolidated adjusted EBITDA ratio, that are expensed as incurred. The Credit Agreement contains financial covenants requiring the Company to maintain certain leverage and fixed charge ratios. The Company is compliant with these covenants as of December 31, 2016. The Credit Agreement also includes limitations on the Company's debt incurrence, dividend payments, and disposal activities.

As of December 31, 2016, the Term Facility requires principal repayments in accordance with the following schedule (in thousands):



2017	$	6,875
2018	9,375
2019	11,875
2020	18,125
2021	50,000
Long-term debt, gross	96,250
Unamortized debt issuance costs	(1,666		)
Long-term debt, net	$	94,584

Reported as:
Current portion of long-term debt	$	6,474
Long-term debt, less current portion	88,110
Total	$	94,584

Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

Commitments and Contingencies

Operating Lease Commitments

The Company leases its facilities under non-cancelable lease agreements. Certain of these arrangements have free rent, escalating rent payment provisions and tenant allowances. Under such arrangements the Company recognizes rent expense on a straight line basis over the non-cancelable lease term and records the difference between cash rent payments and the recognition of rent expense as a deferred rent liability within other current liabilities and other liabilities for the current and non-current portion, respectively, in the Company's consolidated balance sheets.

In March 2012, the Company entered into an amended lease agreement related to its San Francisco, California office space. The amendment, which took effect on May 1, 2013, increased the rentable space to approximately 67,000 total square feet and extended the term through October 2019. The monthly base rent payments pursuant to this lease are approximately $0.3 million per month, increasing to approximately $0.4 million per month over the life of the lease.

In October 2013, the Company entered into an agreement to sublease a portion of its San Francisco, California office space. This sublease took effect on February 1, 2014 for a 36-month term through January 2017 and was subsequently renewed through October 2019.

Rent expense related to non-cancelable operating leases, net of sublease income, was $5.2 million, $3.5 million, and $3.5 million for the years ended December 31, 2016, 2015 and 2014, respectively. The Company recognized sublease income of $0.7 million, $0.6 million, and $0.6 million for the years ended December 31, 2016, 2015 and 2014, respectively.

As of December 31, 2016, the future minimum lease payments required under non-cancelable operating leases and the future minimum payments to be received from non-cancelable subleases were as follows (in thousands):



2017	$	5,538
2018	5,408
2019	4,517
2020	619
2021	227
Thereafter	611
Future non-cancelable minimum operating lease payments	16,920
Less: minimum payments to be received from non-cancelable subleases	(3,295		)
Total future non-cancelable minimum operating lease payments, net	$	13,625

Deferred Payment Obligations

On December 22, 2014, the Company and RPX Clearinghouse LLC (a wholly owned subsidiary of the Company) entered into an Asset Purchase Agreement by and among Rockstar Consortium US LP, Rockstar Consortium LLC, Bockstar Technologies LLC, Constellation Technologies LLC, MobileStar Technologies LLC, and NetStar Technologies LLC (the “Sellers”), for the purchase of substantially all of the patent assets owned or controlled by the Sellers (the “Rockstar Transaction”). In connection with the Rockstar Transaction, the Company acquired certain common stock, convertible preferred stock, and redeemable convertible preferred stock investments held by the Sellers. To fund the acquisition of these investments, the Company received $6.3 million from a syndicate participant and seller financing of $5.9 million. The seller financing was settled during the year ended December 31, 2015.

The loan received from the syndicate participant bore no interest. The terms of the obligation required repayment up to the $6.3 million received only to the extent proceeds were received from the sale of the common and convertible preferred stock securities, which resulted in a difference between the funding received and the fair value of the loan. The Company elected to carry this loan at fair value and had categorized it as a Level 3 instrument due to the significance of unobservable inputs developed using company-specific information to estimate the loan’s fair value. Changes in fair value are reported in other expense, net in the Company's consolidated statements of operations. This loan was settled without payment during the year ended December 31, 2016 which resulted in a gain on extinguishment of $0.5 million recognized in other expense, net in the consolidated statements of operations during the year ended December 31, 2016. This fair value of this loan decreased from $2.4 million to nil during the year ended December 31, 2016 due to a $1.9 million fair value adjustment and a $0.5 million gain on extinguishment which were recognized in other expense, net in the consolidated statements of operations.

Litigation

From time to time, the Company may be a party to various litigation claims in the normal course of business. Legal fees and other costs associated with such actions are expensed as incurred. The Company assesses, in conjunction with its legal counsel, the need to record a liability for litigation or contingencies. A liability is recorded when and if it is determined that such a liability for litigation or contingencies is both probable and reasonably estimable. No liability for legal contingencies was recorded as of December 31, 2016 or 2015.

In April 2016, Sourceprose Corporation filed a complaint in the U.S. District Court for the Western District of Texas against the Company alleging breach of an agreement with the plaintiff to purchase certain patent assets and breach of a non-disclosure agreement with plaintiff. In July 2016, the Court transferred the litigation to the U.S. District Court for the Northern District of California. On November 2, 2016, we moved to dismiss the claims of breach of an assignment of patents. On January 26, 2017, the U.S. District Court for the Northern District of California dismissed the claims of breach of a patent assignment without prejudice, and allowed the plaintiff to file an amended complaint. The plaintiff filed an amended complaint on February 9, 2017, alleging breach of a non-disclosure agreement and breach of an agreement to assign patents and a breach of a settlement agreement. The plaintiff seeks monetary damages and specific enforcement of the alleged purchase agreement. The Company is not currently able to determine whether there is a reasonable possibility that a loss has been incurred, nor can we estimate the potential loss or range of the potential loss that may result from this litigation.

In June 2013, Kevin O’Halloran, as Trustee of the Liquidating Trust of Teltronics, Inc. (the “Debtor”), filed a complaint in the U.S. Bankruptcy Court for the Middle District of Florida against the Company and Harris Corporation (the “Defendants”). The

complaint alleges that the Defendants are liable under federal and state bankruptcy law regarding fraudulent transfers for the value of a patent portfolio purchased by the Company from Harris Corporation pursuant to an agreement entered into in January 2009, and within four years of the date the Debtor filed its petition in bankruptcy. In February 2015, the Court held a trial and in November 2015 entered judgment in favor of the Defendants. In December 2015, the Debtor filed an appeal of the judgment to the U.S. District Court for the Middle District of Florida. In August 2016, the District Court affirmed the judgment in favor of the Defendants. In September 2016, the Debtor filed an appeal of the judgment to the U.S. Court of Appeals for the Eleventh Circuit. The appellate briefing was completed in January 2017, and the parties are currently awaiting scheduling of oral argument. The Company is not currently able to determine whether there is a reasonable possibility that a loss has been incurred, nor can it estimate the potential loss or range of the potential loss that may result from this litigation.

In March 2012, Cascades Computer Innovations LLC filed a complaint in U.S. District Court for the Northern District of California (the “Court”) against the Company and five of its clients (collectively the “Defendants”). The complaint alleges that the

Defendants violated federal antitrust law, California antitrust law and California unfair competition law. The complaint further alleges that after the Company terminated its negotiations with the plaintiff to license certain patents held by the plaintiff, the Defendants violated the law by jointly refusing to negotiate or accept licenses under the plaintiff’s patents. The plaintiff seeks unspecified monetary damages and injunctive relief. In January 2013, the Court dismissed the complaint against the Defendants and granted the plaintiff leave to amend its complaint. In February 2013, the plaintiff filed an amended lawsuit alleging that the Defendants violated federal antitrust law, California antitrust law and California unfair competition law. In April 2016, the Court entered a final judgment in favor of the Defendants on all the plaintiff's claims. In April 2016, the plaintiff filed an appeal of the judgment before the Ninth Circuit Court of Appeals. The appellate briefing was completed in November 2016, and the parties are currently awaiting the scheduling of oral argument. The Company is not currently able to determine whether there is a reasonable possibility that a loss has been incurred, nor can it estimate the potential loss or range of the potential loss that may result from this litigation.

Guarantees and Indemnifications

The Company has, in connection with the sale of patent assets, agreed to indemnify and hold harmless the buyer of such patent assets for losses resulting from breaches of representations and warranties made by the Company. The terms of these indemnification agreements are generally perpetual. The maximum amount of potential future indemnification is unlimited. To date, the Company has not paid any amount to settle claims or defend lawsuits. The Company is unable to reasonably estimate the maximum amount that could be payable under these arrangements since these obligations are not capped but are conditional to the unique facts and circumstances involved. Accordingly, the Company had no liabilities recorded for these agreements as of December 31, 2016 or 2015. The Company has no reason to believe that there is any material liability related to such indemnification provisions. The Company does not indemnify its clients for patent infringement.

As part of the Company's discovery services offering, the Company generally warrants that it will perform the services in good faith and in a timely and professional manner, and that it will exercise the same level of professional care commonly found in the industry. Additionally, the Company has agreed to provisions for indemnifying customers against liabilities if its discovery services infringe a third party’s intellectual property rights or if it breaches agreed privacy, security and/or confidentiality obligations. To date, the Company has not incurred any material costs, and it has not accrued any liabilities in the accompanying consolidated financial statements, as a result of these obligations. The Company also enters into service-level agreements with its discovery services clients that specify required levels of application uptime and may permit customers to receive credits or to terminate their agreements in the event that the Company fails to meet required performance levels. To date, the Company has not experienced any significant failures to meet defined levels of performance and, as a result, has not accrued any liabilities related to these agreements in its consolidated financial statements.

In accordance with its amended and restated bylaws, the Company also indemnifies certain officers and employees for losses incurred in connection with actions, suits or proceedings threatened or brought against such officer or employee arising from his or her service to the Company as an officer or employee, subject to certain limitations. The term of the indemnification period is indefinite. The maximum amount of potential future indemnification is unspecified. The Company has no reason to believe that there is any material liability for actions, events or occurrences that have occurred to date.

Reserves for Known and Incurred but not Reported Claims

In August 2012, the Company began offering insurance to cover certain costs of patent litigation brought against its insured clients. As of December 31, 2016 and 2015, the Company had a total of 181 and 89 active policies, respectively, and recorded a reserve of $0.9 million and $0.7 million, respectively, for known and incurred but not reported claims that represent estimated claim costs and related expenses.

The Company regularly reviews loss reserves using a variety of actuarial techniques and updates them as its loss experience develops.

Stockholders' Equity

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

Stockholder's Equity

Common Stock

As of December 31, 2016, under the Company’s amended and restated certificate of incorporation, the Company is authorized to issue 200 million shares of common stock with a par value of $0.0001 per share.

Preferred Stock

As of December 31, 2016, under the Company’s amended and restated certificate of incorporation, the Company is authorized to issue 10 million shares of preferred stock with a par value of $0.0001 per share. The Board of Directors is authorized to provide for the issuance of one or more series of preferred stock and to establish the powers, preferences and rights of the preferred shares.

Equity Plans

In February 2011, the Company’s Board of Directors adopted the 2011 Equity Incentive Plan (the “2011 Plan”), which became effective on the date of the Company’s initial public offering. The 2011 Plan provides for the issuance of incentive stock options, non-qualified stock options, stock appreciation rights, restricted shares of the Company’s common stock and stock units to employees, directors and non-employees. The Board of Directors initially reserved 1,500,000 shares of common stock for future issuance under the 2011 Plan pursuant to automatic increases permitted under the 2011 Plan. During 2016 and 2015, the Company reserved an additional 2,000,000 and 1,000,000 shares, respectively, of common stock for future issuance under the 2011 Plan. As of December 31, 2016, there were 3,586,000 shares available for grant under the 2011 Plan.

In August 2008, the Company’s Board of Directors adopted the 2008 Plan (the “2008 Plan”) which provided for the issuance of incentive stock options, non-qualified stock options, as well as the direct award or sale of shares of common stock to employees, directors and non-employees for up to 9,019,474 shares of common stock, as amended. No further awards have been made under the 2008 Plan since the 2011 plan became effective; however, all awards outstanding under the 2008 Plan will continue to be governed by the existing terms.

Under both the 2011 Plan and 2008 Plan, incentive stock options and non-qualified stock options are to be granted at a price that is not less than 100% of the fair value of the stock at the date of grant. Stock options granted to newly hired employees vest 25% on the first anniversary of the date of hire and ratably each month over the ensuing 36-month period. Stock options granted to existing employees generally vest ratably over the 48-months following the date of grant. Stock options are exercisable for a maximum period of 10 years after date of grant. Incentive stock options granted to stockholders who own more than 10% of the outstanding stock of the Company at the time of grant must be issued at an exercise price not to be less than 110% of the fair value of the stock on the date of grant. RSUs granted to newly hired employees vest 25% on the first Company-established vest date after the first anniversary of the employee’s date of hire and ratably each quarter over the ensuing 12-quarter period. RSUs granted to existing employees generally vest ratably each quarter over the 16 quarters following the date of grant. PBRSUs with market conditions granted to employees may vest 25% on each anniversary of the grant date, provided that the average closing price per share of the Company’s common stock for any 90-calendar day period during the year preceding such anniversary date is equal to or greater than 1.25 times the Company’s stock price on the grant date or on the anniversary of the grant date. To the extent that a portion of the award does not vest on a specific anniversary date, it will remain eligible to vest in any of following three successive anniversaries of the grant date, provided that any applicable market conditions have been satisfied at that time. PBRSUs with performance conditions granted to employees generally vest 25% annually if the performance criteria is satisfied.

A summary of the Company’s activity under its equity-settled award plans and related information is as follows (in thousands, except per share data and years):



			Options Outstanding
	Shares Available for Grant		Number of Shares		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life in Years	Aggregate Intrinsic Value
Balance - December 31, 2015	3,159		2,340		$	11.11
Shares authorized	2,000		—		—
Options exercised	—		(444	)	8.51
Options forfeited	128		(128	)	12.97
Restricted stock units granted	(2,644	)	—		—
Restricted stock units forfeited	525		—		—
Restricted stock units withheld related to net share settlement of restricted stock units	418		—		—
Balance - December 31, 2016	3,586		1,768		11.63		4.2	$	2,939
Vested and exercisable - December 31, 2016			1,768		11.63		4.2	2,939
Vested and expected to vest - December 31, 2016			1,768		11.63		4.2	2,939

The aggregate intrinsic value of stock options exercised during the years ended December 31, 2016, 2015 and 2014 was $0.9 million, $6.8 million and $7.0 million, respectively. The total fair value of stock options vested during the years ended December 31, 2016, 2015 and 2014 was $1.3 million, $3.3 million and $6.2 million, respectively.

Restricted Stock Units

The summary of restricted stock unit activity, which includes PBRSUs, is as follows (in thousands, except per share data):



	Number of Shares		Weighted-Average Grant Date Fair Value		Aggregate Intrinsic Value
Non-vested units - December 31, 2015	2,490		$	13.35
Granted	2,644		10.95
Vested	(1,185	)	13.16
Forfeited	(525	)	13.32
Non-vested units - December 31, 2016	3,424		11.53		$	36,979

The total fair value of RSUs vested during the years ended December 31, 2016, 2015 and 2014 was $11.9 million, $14.4 million and $13.7 million, respectively.

In October 2013, the Board of Directors approved net-share settlement for tax withholdings on RSU vesting. In 2016 and 2015, the Company withheld issuing 418,201 and 354,446 shares of its common stock, respectively, based on the value of the RSUs on their vesting dates as determined by the Company’s closing common stock price. Total payments for the employees’ minimum tax obligations to taxing authorities were $4.2 million and $5.1 million for the years ended December 31, 2016 and 2015, respectively, and were recorded as a reduction to additional paid-in capital and reflected as a financing activity within the consolidated statements of cash flows. The net-share settlements reduced the number of shares that would have otherwise been issued on the vesting date and increased the number of shares reserved for future issuance under the 2011 Plan.

Stock-Based Compensation Related to Employees and Directors

The fair value of RSUs granted to employees and non-employee directors is measured by reference to the fair value of the underlying shares on the date of grant.

PBRSUs granted during the year ended December 31, 2016 contain service, performance, and market conditions that affect the quantity of awards that will vest. PBRSUs granted during the year ended December 31, 2015 contain both service and performance conditions that affect the quantity of awards that will vest. PBRSUs granted during the year ended December 31, 2014 contain both service and market conditions that affect the quantity of awards that will vest. During the years ended December 31, 2016, 2015, and 2014, the Company granted 115,657, 54,375, and 200,000 PBRSUs, respectively. The Company estimates the grant date fair value of PBRSUs which include performance conditions by reference to the fair value of the underlying shares on the date of grant. The Company estimates the grant date fair value of PBRSUs which include market conditions using the Monte Carlo simulation model.

The weighted-average assumptions used to estimate the fair value of PBRSUs with market conditions and the resulting fair values are as follows:



	Year Ended December 31,
	2016			2015	2014
Dividend yield	—			n/a	—
Risk free rate	1.08		%	n/a	1.11		%
Expected volatility	38		%	n/a	48		%
Grant date fair value	$	6.28		n/a	$	7.47

Stock-based compensation expense related to stock options granted to employees and non-employee directors was $0.9 million, $2.9 million and $5.4 million for the years ended December 31, 2016, 2015 and 2014, respectively. Stock-based compensation expense related to RSUs granted to employees and non-employee directors was $16.9 million, $14.2 million and $11.6 million for the years ended December 31, 2016, 2015 and 2014, respectively. Stock-based compensation expense related to PBRSUs granted to employees was $0.6 million, $0.7 million, and $0.8 million for the years ended December 31, 2016, 2015 and 2014, respectively.

As of December 31, 2016, there was $34.5 million of unrecognized compensation cost related to RSUs, including PBRSUs, which is expected to be recognized over a weighted-average period of 2.6 years. Future grants of equity awards will increase the amount of stock-based compensation expense to be recorded.

Stock Repurchase Program

On February 10, 2015, the Company announced that its Board of Directors had authorized a share repurchase program under which the Company is authorized to repurchase up to $75.0 million of its outstanding common stock with no expiration date from the date of authorization. In March 2016 and May 2016, the Company increased its share repurchase program by $25 million and $50 million, respectively, for a total amount authorized of $150 million. As of December 31, 2016, the Company repurchased $86.3 million of the outstanding common stock. Under the program, shares may be purchased in open market transactions, including through block purchases, through privately negotiated transactions, or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The share repurchase program does not have an expiration date and may be suspended, terminated or modified at any time for any reason. The Company’s share repurchase program does not obligate it to acquire any specific number of shares. The Company repurchased shares of its common stock in the open market, which were retired upon repurchase. The purchase price for the repurchased shares are reflected as a reduction to common stock and retained earnings in the Company's consolidated balance sheet during the period presented as follows (in thousands, except per share data):



	Shares Repurchased	Average Price per Share		Value of Shares Repurchased
Cumulative shares repurchased as of January 1, 2016	1,993	$	13.12	$	26,175
Repurchase of shares of common stock	5,924	10.15		60,101
Cumulative shares repurchased as of December 31, 2016	7,917	$	10.90	$	86,276

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Income before provision for income tax consists of the following (in thousands):



	Year Ended December 31,
	2016		2015		2014
Domestic	$	28,536	$	65,445	$	64,238
International	3,773		54		44
Total income before provision for income taxes	$	32,309	$	65,499	$	64,282

The components of the provision for income taxes are as follows (in thousands):



	Year Ended December 31,
	2016			2015			2014
Current:
Federal	$	(12,400	)	$	(23,456	)	$	(26,517	)
State	(4,038		)	(2,790		)	(3,031		)
Foreign	(11,097		)	(12,406		)	(9,611		)
Total current provision for income taxes	(27,535		)	(38,652		)	(39,159		)
Deferred:
Federal	11,596			12,022			13,668
State	1,097			553			550
Foreign	768			—			—
Total deferred benefit for income taxes	13,461			12,575			14,218
Total provision for income taxes	$	(14,074	)	$	(26,077	)	$	(24,941	)

Net deferred tax assets consist of the following (in thousands):



	December 31,
	2016			2015
Deferred tax assets:
Deferred revenue	$	1,843		$	1,438
Reserves and other	6,292			5,017
Stock-based compensation	5,682			5,701
Depreciation and amortization	14,050			5,560
Net operating loss carryforwards	7,246			—
Total deferred tax assets	35,113			17,716
Valuation allowance	(875		)	(1,097		)
Net deferred tax assets	$	34,238		$	16,619

The following is a reconciliation of the statutory federal income tax to the Company’s effective tax (in thousands):



	Year Ended December 31,
	2016			2015			2014
Tax at statutory federal rate	$	(11,307	)	$	(22,939	)	$	(22,498	)
State tax – net of federal benefit	(1,674		)	(1,459		)	(1,678		)
Permanent differences	(1,000		)	(663		)	(879		)
Foreign tax	(8,969		)	(12,370		)	(9,576		)
Foreign tax credits	9,191			12,370			9,576
Foreign income not taxed at federal rate	—			(3		)	(3		)
Change in valuation allowance	222			(1,097		)	—
Other	(537		)	84			117
Total provision for income taxes	$	(14,074	)	$	(26,077	)	$	(24,941	)

As of December 31, 2016, the Company had federal and state capital loss carryforwards of $1.5 million available to reduce future taxable income which expire in 2020 if not utilized. As of December 31, 2016, the Company had federal and state net operating loss carryforwards of $38.0 million which will begin to expire in 2023 if not utilized. The utilization of these carryforwards may be limited if there are certain changes in the Company's ownership.

In assessing the realization of deferred tax assets, management considers whether it is more-likely-than-not that some portion or all of deferred assets will not be realized. The ultimate realization of the deferred tax asset is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Based on the available objective evidence as of December 31, 2016, management believes it is more-likely-than-not that the U.S. net deferred tax asset, other than certain capital losses, will be fully realized. The Company's valuation allowance decreased by $0.2 million during the year ended December 31, 2016 due to the utilization of current year capital loss carryforwards.

Internal Revenue Code Section 382 places a limitation (the Section 382 Limitation) on the amount of taxable income that can

be offset by net operating loss carryforwards after a change in control (generally greater than 50% change in ownership) of a loss

corporation. California has similar rules. Generally, after a change in control, a loss corporation cannot deduct operating loss

carryforwards in excess of the Section 382 Limitation. Management has considered the impact of such limitation in determining the

utilization of its operating loss carryforwards against taxable income in future periods.

Deferred tax liabilities have not been recognized for undistributed earnings for foreign subsidiaries because it is management’s intention to indefinitely reinvest such undistributed earnings outside the U.S. Generally, such earnings are subject to potential foreign withholding tax and the U.S. tax upon remittance of dividends and under certain other circumstances. The Company believes that the potential liability would not be material.

Uncertain Tax Positions

As of December 31, 2016, the Company’s total amount of unrecognized tax benefits was $8.3 million, all of which would impact the Company’s effective tax rate, if recognized.

The following table summarizes the activity related to the Company’s unrecognized tax benefits (in thousands):



	2016			2015		2014
Balance as of January 1,	$	5,315		$	3,707	$	2,036
Gross increase related to current period tax positions	1,567			1,606		1,672
Gross increase related to prior period tax positions	1,841			2		—
Gross decrease related to prior period tax positions	(423		)	—		(1		)
Balance as of December 31,	$	8,300		$	5,315	$	3,707

The Company does not believe it is reasonably possible that its unrecognized tax benefits will materially change within the next twelve months.

The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. During the years ended December 31, 2016, 2015 and 2014, the Company recognized $0.6 million, $0.4 million, and $0.7 million, respectively, of interest and penalties associated with unrecognized tax benefits.

During 2016, the statute of limitations expired with respect to the Company’s 2011 tax year which was under examination by the State of California Franchise Tax Board. The conclusion of this examination did not have a material impact on the Company's consolidated financial statements. The 2013 through 2016 tax periods remain open to examination by the Internal Revenue Service and the 2012 through 2016 tax periods remain open to examination by most state tax authorities. Inventus's federal income tax return for fiscal year 2013 is currently under examination by the Internal Revenue Service and at this time, although the outcome is subject to significant uncertainty, the Company believes it has valid positions supporting its tax return and does not expect that proposed adjustments, if any, would be material to the Company's consolidated financial statements.

Related-Party Transactions	12 Months Ended
Related-Party Transactions	Dec. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	Related-Party Transactions During both years ended December 31, 2016 and 2015, four members of the Company’s Board of Directors also served on the boards of directors of RPX clients. During the year ended December 31, 2014, five members of the Company’s Board of Directors also served on the board of directors of RPX clients. The Company recognized revenue from these clients in the amount of $9.8 million, $9.3 million and $9.4 million during the years ended December 31, 2016, 2015 and 2014, respectively. The Company recognized selling, general, and administrative expenses from products and services provided by these clients of $0.8 million, $0.3 million, and $0.2 million for the years ended December 31, 2016, 2015 and 2014, respectively. There were $1.3 million and nil of receivables due from these clients as of December 31, 2016 and 2015, respectively.

Employee Savings Plan	12 Months Ended
Employee Savings Plan	Dec. 31, 2016
Employee Savings Plan [Abstract]
Employee Savings Plan	. Employee Savings Plan The Company has savings plans, which qualify under Section 401(k) of the Internal Revenue Code (the “Plans”), available for its employees in the United States who meet the certain age and service requirements. Under the terms of the Plans, employees may make voluntary contributions up to maximum statutory limits, and the Company matches contributions based on the amount of the employees' contributions subject to certain limits. The Company recorded contribution expense of $0.6 million, $0.5 million, and $0.4 million during the years ended December 31, 2016, 2015, and 2014.

Segment Reporting

12 Months Ended

Dec. 31, 2016

Segment Reporting Information [Line Items]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Summarized financial information by segment for the year ended December 31, 2016 utilized by the Company's chief operating decision maker is as follows (in thousands):



	Year Ended December 31,
	2016
Patent Risk Management
Revenue	$	266,995
Cost of revenue	163,865
Selling, general and administrative expenses	76,467
Operating income	26,663
Stock-based compensation, including related taxes	17,633
Depreciation and amortization	162,262
Adjusted EBITDA	$	206,558

Discovery Services
Revenue	$	66,112
Cost of revenue	33,397
Selling, general and administrative expenses	23,990
Operating income	8,725
Stock-based compensation, including related taxes	935
Depreciation and amortization	9,361
Adjusted EBITDA	$	19,021

Consolidated
Revenue	$	333,107
Cost of revenue	197,262
Selling, general and administrative expenses	100,457
Operating income	$	35,388

Segment Reporting

Operating segments are components of an enterprise about which separate financial information is available. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. Prior to the acquisition of Inventus in January 2016, the Company’s Chief Executive Officer reviewed financial information presented on a consolidated basis and, as a result, the Company concluded that there was only one operating and reportable segment. Subsequent to the acquisition of Inventus (see Note 7, "Business Combinations"), the Company's Chief Executive Officer reviews separate financial information for the patent risk management and discovery services businesses. Therefore as of January 2016, the Company has two reportable segments: 1) patent risk management which generates its revenues primarily from membership subscriptions, premiums earned from insurance policies, and management fees for marketing, underwriting, and claim management and 2) discovery services which generates its revenues primarily from fees generated for data collection, hosting and processing, project management, and document review services. There are no material internal revenue transactions between these two reportable segments.

Although adjusted EBITDA is not a measure of financial performance determined in accordance with GAAP, the Company's chief operating decision maker evaluates segment financial performance by utilizing the segment's adjusted EBITDA because the Company believes it is a useful supplemental measure that reflects core operating performance and provides an indicator of the segment's ability to generate cash. The Company defines adjusted EBITDA as net income exclusive of provision for income taxes, interest and other income (expense), net, stock-based compensation and related employer payroll taxes, depreciation, and amortization. There are limitations in using the Company's measures of financial performance that are not determined in accordance with GAAP and these may be different from other financial measures not determined in accordance with GAAP used by other companies. These financial measures are limited in value because they exclude certain items that may have a material impact on the Company's reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by the Company about which items are adjusted to calculate its financial measures not determined in accordance with GAAP. The presentation of financial measures not determined in accordance with GAAP should not be considered in isolation or as a substitute for or superior to financial results determined in accordance with GAAP.

Summarized financial information by segment for the year ended December 31, 2016 utilized by the Company's chief operating decision maker is as follows (in thousands):



	Year Ended December 31,
	2016
Patent Risk Management
Revenue	$	266,995
Cost of revenue	163,865
Selling, general and administrative expenses	76,467
Operating income	26,663
Stock-based compensation, including related taxes	17,633
Depreciation and amortization	162,262
Adjusted EBITDA	$	206,558

Discovery Services
Revenue	$	66,112
Cost of revenue	33,397
Selling, general and administrative expenses	23,990
Operating income	8,725
Stock-based compensation, including related taxes	935
Depreciation and amortization	9,361
Adjusted EBITDA	$	19,021

Consolidated
Revenue	$	333,107
Cost of revenue	197,262
Selling, general and administrative expenses	100,457
Operating income	$	35,388

The following table reconciles the Company's subtotal segment adjusted EBITDA to consolidated net income (in thousands):



	Year Ended December 31,
	2016

Subtotal segment adjusted EBITDA	$	225,579
Depreciation and amortization	(171,623		)
Stock-based compensation, including related taxes	(18,568		)
Interest and other expense, net	(3,079		)
Provision for income taxes	(14,074		)
Net income	$	18,235

The following table summarizes total assets by segment (in thousands):



	December 31,
	2016
Patent risk management	$	501,540
Discovery services ⁽¹⁾	233,749
Total assets	$	735,289

⁽¹⁾Includes goodwill and intangible assets acquired through the Company's acquisition of Inventus in January 2016.

The Company markets its services to companies around the world. Revenue is generally attributed to geographic areas based on the country in which the client is domiciled. The following table presents revenue by location and revenue generated by country as a percentage of total revenue for the applicable period, for countries representing 10% or more of revenues for one or more of the periods presented (dollars in thousands):



	Year Ended December 31,
	2016				2015				2014
United States	$	194,196	58	%	$	186,439	64	%	$	166,593	64	%
Japan	37,200		11		36,195		12		36,849		14
Korea	25,288		8		28,319		10		17,847		7
Rest of world	76,423		23		40,928		14		38,046		15
Total revenue	$	333,107	100	%	$	291,881	100	%	$	259,335	100	%

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Selected Quarterly Financial Information (Unaudited)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Information (Unaudited)

Summarized quarterly financial information for the years ended December 31, 2016 and 2015 is as follows (in thousands, except per share data):



	Three Months Ended
	March 31, 2016		June 30, 2016			September 30, 2016			December 31, 2016
Revenue	$	79,735	$	83,109		$	88,461		$	81,802
Cost of revenue	47,666		49,070			50,830			49,696
Gross profit	32,069		34,039			37,631			32,106
Selling, general and administrative expenses	26,895		25,904			23,615			24,043
Operating income	5,174		8,135			14,016			8,063
Interest and other income (expense), net ⁽¹⁾	1,805		(1,549		)	(1,250		)	(2,085		)
Income before provision for income taxes	6,979		6,586			12,766			5,978
Provision for income taxes	2,742		2,436			4,651			4,245
Net income	$	4,237	$	4,150		$	8,115		$	1,733

Net income per share⁽²⁾:
Basic	$	0.08	$	0.08		$	0.16		$	0.04
Diluted	$	0.08	$	0.08		$	0.16		$	0.03

Other Data:
Deferred revenue, including current portion	$	139,992	$	123,133		$	102,691		$	130,408
Stock-based compensation expense	$	4,929	$	4,899		$	4,269		$	4,178



	Three Months Ended
	March 31, 2015		June 30, 2015			September 30, 2015		December 31, 2015
Revenue	$	83,287	$	67,551		$	68,212	$	72,831
Cost of revenue	34,759		36,985			37,639		39,475
Gross profit	48,528		30,566			30,573		33,356
Selling, general and administrative expenses	19,459		18,997			18,773		20,199
Gain on sale of patent assets	—		(592		)	—		—
Operating income	29,069		12,161			11,800		13,157
Interest and other income (expense), net	121		934			876		(2,619		)
Income before provision for income taxes	29,190		13,095			12,676		10,538
Provision for income taxes	11,159		5,065			4,842		5,011
Net income	$	18,031	$	8,030		$	7,834	$	5,527

Net income per share⁽²⁾:
Basic	$	0.33	$	0.15		$	0.14	$	0.10
Diluted	$	0.33	$	0.14		$	0.14	$	0.10

Other Data:
Deferred revenue, including current portion	$	158,411	$	142,623		$	117,431	$	115,652
Stock-based compensation expense	$	3,881	$	4,644		$	4,603	$	4,466

⁽¹⁾See Note 12, "Commitments and Contingencies" and Note 11, "Debt" for further information regarding interest and other income (expense), net.

⁽²⁾Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share.

Basis of Presentation and Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Use of Estimates

Significant estimates and assumptions made by management include the determination of:


•	the estimated economic useful lives of patent assets;


•	the determination of a best estimated selling price of a subscription and patent infringement liability insurance;


•	the fair value of assets acquired and liabilities assumed for business combinations;


•	the assumptions and methods used in deriving the fair value of goodwill and intangible assets;


•	recognition and measurement of current and deferred income taxes, any related valuation allowances, and uncertain tax positions;


•	the fair value of stock awards issued;


•	the assumptions and methods used in deriving the fair value of deferred payment obligations;


•	the estimated reserves for known and incurred but not reported claims

Revenue Recognition

Patent Risk Management


•	Persuasive evidence of an arrangement exists. All subscription fees are supported by an executed subscription agreement.

•


•	Collectability is reasonably assured. Subscription fees are generally collected on or near the effective date of the agreement and again at or near each anniversary date thereof. The Company does not recognize revenue in instances where collectability is not reasonably assured. Generally, the Company's subscription agreements state that all fees paid are non-refundable.

Key indicators evaluated to determine the Company's role as either principal or agent in the transaction include, among others:


•	the entity to grant the license of the patent(s) is generally viewed as the primary obligor in the arrangement, given that it owns and controls the underlying patent(s) and thus has the absolute authority to grant and deliver any release from past damages and dismissal from litigation, and typically determines the general terms of the license(s) granted;


•	the Company generally does not have any inventory risk, as its clients often enter into contractual obligations with the Company prior to or contemporaneous to the Company entering into a contractual obligation with the seller;


•	the Company has pricing latitude as it negotiates client contributions, however, this latitude is often limited as the economics of the transaction ultimately depend on the sales price set by the seller;


•	the Company is not involved in the determination of the product or service specification and has no ability to change the product or perform any part of the service in connection with these transactions, as the seller owns the underlying patent(s); and


•	the Company has limited or no credit risk, as each respective client has a contractually binding obligation, such clients are generally of high credit quality and in some instances, the Company collects the client contribution prior to making a payment to the seller.

In certain syndicated transactions, the Company may recognize revenue upon the sale of licenses to specific patent assets and/or upon completion of the rendering of advisory services.

The Company has determined its BESP for a subscription to our patent risk management services based on the following:

•

The Company has determined its BESP for its insurance product based on the following:

•

Discovery Services

Revenue from the Company's discovery services is primarily generated from the following:


•	data hosting fees based on data stored and number of users;


•	fees for month-to-month delivery of services, such as data processing (conversion of data into organized, searchable electronic database), project management and data collection services;


•	document review services which assist clients in the manual review of data responsive to a legal matter; and


•	printing and binding services (paper-based services).

The Company’s discovery services arrangements do not include any substantive general rights of return or other contingencies.

Accounting fo Payments to Clients

Accounting for Payments to Clients

Deferred Revenue

Accounts Receivable

Concentration of Risk

Fair Value Measurements

Level 1 – Valuations based on quoted prices in active markets for identical assets or liabilities and readily accessible by the Company at the reporting date.

Level 3 – Valuations based on inputs that are unobservable.

Cash and Cash Equivalents

Short-Term Investments

Property and Equipment

Property and Equipment, Net

Internal-Use Software and Website Development Costs

Patent Assets, Net

In instances where the Company sells patent assets, the amount of consideration received is compared to the asset’s carrying value to determine and recognize a gain or loss

Impairment of Long-Lived Assets

Goodwill

Intangible Assets, Net

Advertising Costs

The Company expenses advertising costs as they are incurred. Advertising expenses were not material for any of the periods presented

Foreign Currency Accounting

Income Taxes

Stock-Based Compensation

Business Combinations

Reserves for Known and Incurred but not Reported Claims

Recently Adopted Accounting Standards

Recent Accounting Pronouncements

Net Income Available to Common Stockholders (Tables)

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Basic and Diluted Net Income Per Share Available To Common Stockholders

The following table presents the calculation of basic and diluted net income per share (in thousands, except for per share data):



	Year Ended December 31,
	2016		2015		2014
Net income per share:
Numerator:
Net income	$	18,235	$	39,422	$	39,341
Denominator:
Basic shares:
Weighted-average shares used in computing basic net income per share	50,462		54,432		53,444
Diluted shares:
Weighted-average shares used in computing basic net income per share	50,462		54,432		53,444
Dilutive effect of stock options and restricted stock units using treasury-stock method	539		978		1,374
Weighted-average shares used in computing diluted net income per share	51,001		55,410		54,818
Net income per share:
Basic	$	0.36	$	0.72	$	0.74
Diluted	$	0.36	$	0.71	$	0.72

Anti-Dilutive Securities Not Included In Diluted Shares Outstanding Calculation



	Year Ended December 31,
	2016	2015	2014
Weighted-average:
Stock options outstanding	—	663	767
Restricted stock units outstanding	2	263	100

Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Schedule of financial assets and liabilities measured at fair value on a recurring basis



	December 31, 2016
	Amortized Cost		Unrealized					Estimated Fair Value		Level 1		Level 2		Level 3
	Amortized Cost		Gains		Losses			Estimated Fair Value		Level 1		Level 2		Level 3
Assets:
Cash equivalents:
Money market funds	$	30,286	$	—	$	—		$	30,286	$	30,286	$	—	$	—
Municipal bonds	3,070		—		—			3,070		—		3,070		—
	$	33,356	$	—	$	—		$	33,356	$	30,286	$	3,070	$	—
Short-term investments:
Commercial paper	$	4,296	$	—	$	(3	)	$	4,293	$	—	$	4,293	$	—
Corporate bonds	10,856		—		(13		)	10,843		—		10,843		—
Equity securities	123		—		(78		)	45		45		—		—
Municipal bonds	55,723		—		(65		)	55,658		—		55,658		—
U.S. government and agency securities	20,033		9		(4		)	20,038		20,038		—		—
	$	91,031	$	9	$	(163	)	$	90,877	$	20,083	$	70,794	$	—



	December 31, 2015
	Amortized Cost		Unrealized					Estimated Fair Value		Level 1		Level 2		Level 3
	Amortized Cost		Gains		Losses			Estimated Fair Value		Level 1		Level 2		Level 3
Assets:
Cash equivalents:
Commercial paper	$	7,997	$	—	$	—		$	7,997	$	—	$	7,997	$	—
Municipal bonds	1,635		—		—			1,635		—		1,635		—
Money market funds	54,663		—		—			54,663		54,663		—		—
	$	64,295	$	—	$	—		$	64,295	$	54,663	$	9,632	$	—
Short-term investments:
Municipal bonds	$	133,033	$	—	$	(96	)	$	132,937	$	—	$	132,937	$	—
Commercial paper	5,493		—		(3		)	5,490		—		5,490		—
Corporate bonds	30,488		3		(93		)	30,398		—		30,398		—
Equity securities	123		—		—			123		123		—		—
U.S. government and agency securities	61,559		—		(62		)	61,497		—		61,497		—
	$	230,696	$	3	$	(254	)	$	230,445	$	123	$	230,322	$	—
Liabilities:
Current liabilities:
Deferred payment obligations	$	6,270	$	3,887	$	—		$	2,383	$	—	$	—	$	2,383

Patent Assets, Net (Tables)

12 Months Ended

Dec. 31, 2016

Patent Assets [Abstract]

Patent Assets, Net

Patent assets, net consisted of the following (in thousands):



	December 31, 2015			Additions			Disposals			December 31, 2016
Patent assets	$	824,258		$	117,457		$	(9,432	)	$	932,283
Accumulated amortization	(569,698		)	(158,814		)	9,228			(719,284		)
Patent assets, net	$	254,560								$	212,999



	December 31, 2014			Additions			Disposals			December 31, 2015
Patent assets	$	665,290		$	160,664		$	(1,696	)	$	824,258
Accumulated amortization	(428,941		)	(142,296		)	1,539			(569,698		)
Patent assets, net	$	236,349								$	254,560

Expected Future Annual Amortization Of Patent Assets

s of December 31, 2016, the Company expects amortization expense in future periods to be as follows (in thousands):



2017	$	127,088
2018	64,157
2019	18,103
2020	3,651
Total estimated future amortization expense	$	212,999

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2016

Property and Equipment, Net

Property And Equipment, Net

Property and equipment, net, consisted of the following (in thousands):



	December 31,
	2016			2015
Internal-use software	$	7,827		$	7,654
Leasehold improvements	2,169			1,799
Computer, equipment and software	5,204			1,387
Furniture and fixtures	935			818
Construction-in-progress	183			—
Total property and equipment, gross	16,318			11,658
Less: Accumulated depreciation and amortization	(9,370		)	(6,925		)
Total property and equipment, net	$	6,948		$	4,733

Business Combinations (Tables)

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

Schedule of Business Acquisitions

The following table summarizes the cash paid and the estimated fair values of the assets and the liabilities assumed (in thousands) and the estimated useful lives of the acquired identifiable intangible assets:



	Estimated Fair Value			Estimated useful life
Current assets	$	19,357
Intangible assets:
Customer relationships	58,000			9 - 10 years
Trademarks	3,200			1 - 6 years
Developed technology	6,400			3 years
Goodwill	145,984
Property, plant, equipment and other long term assets	3,347
Deferred tax asset	10,595
Current liabilities	(7,280		)
Deferred tax liability	(5,477		)
Other long term liabilities	(826		)
Cash purchase consideration paid	$	233,300

Schedule of proforma information

The following unaudited pro forma financial information is for information purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place as of January 1, 2015 (in thousands, except per share data):



	Year Ended December 31,
	2016
Revenue	$	336,047
Net income	$	18,824
Basic net income per share	$	0.37
Diluted net income per share	$	0.37

Goodwill (Tables)

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill



	Patent Risk Management		Discovery Services			Total
Balance as of December 31, 2015	$	19,978	$	—		$	19,978
Goodwill from business acquisition	—		145,984			145,984
Foreign currency translation adjustments	—		(14,640		)	(14,640		)
Balance as of December 31, 2016	$	19,978	$	131,344		$	151,322

The Company reviews goodwill for impairment at least annually or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. As of December 31, 2016, no impairment of goodwill had been identified.

Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2016

Acquired Finite-Lived Intangible Assets [Line Items]

Intangible Assets, Net

Intangible assets, net, as of December 31, 2016 and 2015 consisted of the following (in thousands, except years):



	December 31, 2016								December 31, 2015
	Weighted-Average Life (years)	Carrying Amount		Accumulated Amortization			Net Carrying Amount		Carrying Amount		Accumulated Amortization			Net Carrying Amount
Proprietary data and models	3.7	$	2,100	$	(2,006	)	$	94	$	2,100	$	(1,694	)	$	406
Trademarks	4.9	4,879		(2,439		)	2,440		1,720		(1,645		)	75
Developed technology	3.0	5,802		(1,978		)	3,824		120		(120		)	—
Customer relationships	9.3	55,719		(6,323		)	49,396		1,050		(659		)	391
Covenant not to compete	3.0	1,900		(1,604		)	296		1,900		(971		)	929
		$	70,400	$	(14,350	)	$	56,050	$	6,890	$	(5,089	)	$	1,801

Expected Future Annual Amortization Of Intangible Assets

s of December 31, 2016, the Company expects amortization expense in future periods to be as follows (in thousands):



2017	$	127,088
2018	64,157
2019	18,103
2020	3,651
Total estimated future amortization expense	$	212,999

Intangible Assets Net

Acquired Finite-Lived Intangible Assets [Line Items]

Expected Future Annual Amortization Of Intangible Assets

(in thousands):



2017	$	8,744
2018	8,215
2019	6,433
2020	6,321
2021	6,321
Thereafter	20,016
Total estimated future amortization expense	$	56,050

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Aggregate Future Non-Cancelable Minimum Lease Payments For Operating Leases



2017	$	5,538
2018	5,408
2019	4,517
2020	619
2021	227
Thereafter	611
Future non-cancelable minimum operating lease payments	16,920
Less: minimum payments to be received from non-cancelable subleases	(3,295		)
Total future non-cancelable minimum operating lease payments, net	$	13,625

Stockholder's Equity (Tables)

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

Activity Under Equity Settled Award Plans And Related Information

A summary of the Company’s activity under its equity-settled award plans and related information is as follows (in thousands, except per share data and years):



			Options Outstanding
	Shares Available for Grant		Number of Shares		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life in Years	Aggregate Intrinsic Value
Balance - December 31, 2015	3,159		2,340		$	11.11
Shares authorized	2,000		—		—
Options exercised	—		(444	)	8.51
Options forfeited	128		(128	)	12.97
Restricted stock units granted	(2,644	)	—		—
Restricted stock units forfeited	525		—		—
Restricted stock units withheld related to net share settlement of restricted stock units	418		—		—
Balance - December 31, 2016	3,586		1,768		11.63		4.2	$	2,939
Vested and exercisable - December 31, 2016			1,768		11.63		4.2	2,939
Vested and expected to vest - December 31, 2016			1,768		11.63		4.2	2,939

Restricted Stock Unit Activity

The summary of restricted stock unit activity, which includes PBRSUs, is as follows (in thousands, except per share data):



	Number of Shares		Weighted-Average Grant Date Fair Value		Aggregate Intrinsic Value
Non-vested units - December 31, 2015	2,490		$	13.35
Granted	2,644		10.95
Vested	(1,185	)	13.16
Forfeited	(525	)	13.32
Non-vested units - December 31, 2016	3,424		11.53		$	36,979

Weighted-Average Assumptions Used To Estimate The Fair Value Of PBRSUs



	Year Ended December 31,
	2016			2015	2014
Dividend yield	—			n/a	—
Risk free rate	1.08		%	n/a	1.11		%
Expected volatility	38		%	n/a	48		%
Grant date fair value	$	6.28		n/a	$	7.47

Stock repurchase activity

The purchase price for the repurchased shares are reflected as a reduction to common stock and retained earnings in the Company's consolidated balance sheet during the period presented as follows (in thousands, except per share data):



	Shares Repurchased	Average Price per Share		Value of Shares Repurchased
Cumulative shares repurchased as of January 1, 2016	1,993	$	13.12	$	26,175
Repurchase of shares of common stock	5,924	10.15		60,101
Cumulative shares repurchased as of December 31, 2016	7,917	$	10.90	$	86,276

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Before Income Tax Provision

Income before provision for income tax consists of the following (in thousands):



	Year Ended December 31,
	2016		2015		2014
Domestic	$	28,536	$	65,445	$	64,238
International	3,773		54		44
Total income before provision for income taxes	$	32,309	$	65,499	$	64,282

Components Of The Provision For Income Taxes

The components of the provision for income taxes are as follows (in thousands):



	Year Ended December 31,
	2016			2015			2014
Current:
Federal	$	(12,400	)	$	(23,456	)	$	(26,517	)
State	(4,038		)	(2,790		)	(3,031		)
Foreign	(11,097		)	(12,406		)	(9,611		)
Total current provision for income taxes	(27,535		)	(38,652		)	(39,159		)
Deferred:
Federal	11,596			12,022			13,668
State	1,097			553			550
Foreign	768			—			—
Total deferred benefit for income taxes	13,461			12,575			14,218
Total provision for income taxes	$	(14,074	)	$	(26,077	)	$	(24,941	)

Net Deferred Tax Liabilities

Net deferred tax assets consist of the following (in thousands):



	December 31,
	2016			2015
Deferred tax assets:
Deferred revenue	$	1,843		$	1,438
Reserves and other	6,292			5,017
Stock-based compensation	5,682			5,701
Depreciation and amortization	14,050			5,560
Net operating loss carryforwards	7,246			—
Total deferred tax assets	35,113			17,716
Valuation allowance	(875		)	(1,097		)
Net deferred tax assets	$	34,238		$	16,619

Reconciliation Of The Statutory Federal Income Tax To Effective Tax

The following is a reconciliation of the statutory federal income tax to the Company’s effective tax (in thousands):



	Year Ended December 31,
	2016			2015			2014
Tax at statutory federal rate	$	(11,307	)	$	(22,939	)	$	(22,498	)
State tax – net of federal benefit	(1,674		)	(1,459		)	(1,678		)
Permanent differences	(1,000		)	(663		)	(879		)
Foreign tax	(8,969		)	(12,370		)	(9,576		)
Foreign tax credits	9,191			12,370			9,576
Foreign income not taxed at federal rate	—			(3		)	(3		)
Change in valuation allowance	222			(1,097		)	—
Other	(537		)	84			117
Total provision for income taxes	$	(14,074	)	$	(26,077	)	$	(24,941	)

Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s unrecognized tax benefits (in thousands):



	2016			2015		2014
Balance as of January 1,	$	5,315		$	3,707	$	2,036
Gross increase related to current period tax positions	1,567			1,606		1,672
Gross increase related to prior period tax positions	1,841			2		—
Gross decrease related to prior period tax positions	(423		)	—		(1		)
Balance as of December 31,	$	8,300		$	5,315	$	3,707

Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Revenue By Location

The following table presents revenue by location and revenue generated by country as a percentage of total revenue for the applicable period, for countries representing 10% or more of revenues for one or more of the periods presented (dollars in thousands):



	Year Ended December 31,
	2016				2015				2014
United States	$	194,196	58	%	$	186,439	64	%	$	166,593	64	%
Japan	37,200		11		36,195		12		36,849		14
Korea	25,288		8		28,319		10		17,847		7
Rest of world	76,423		23		40,928		14		38,046		15
Total revenue	$	333,107	100	%	$	291,881	100	%	$	259,335	100	%

Selected Quarterly Financial Information (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Information (Unaudited)

Summarized quarterly financial information for the years ended December 31, 2016 and 2015 is as follows (in thousands, except per share data):



	Three Months Ended
	March 31, 2016		June 30, 2016			September 30, 2016			December 31, 2016
Revenue	$	79,735	$	83,109		$	88,461		$	81,802
Cost of revenue	47,666		49,070			50,830			49,696
Gross profit	32,069		34,039			37,631			32,106
Selling, general and administrative expenses	26,895		25,904			23,615			24,043
Operating income	5,174		8,135			14,016			8,063
Interest and other income (expense), net ⁽¹⁾	1,805		(1,549		)	(1,250		)	(2,085		)
Income before provision for income taxes	6,979		6,586			12,766			5,978
Provision for income taxes	2,742		2,436			4,651			4,245
Net income	$	4,237	$	4,150		$	8,115		$	1,733

Net income per share⁽²⁾:
Basic	$	0.08	$	0.08		$	0.16		$	0.04
Diluted	$	0.08	$	0.08		$	0.16		$	0.03

Other Data:
Deferred revenue, including current portion	$	139,992	$	123,133		$	102,691		$	130,408
Stock-based compensation expense	$	4,929	$	4,899		$	4,269		$	4,178



	Three Months Ended
	March 31, 2015		June 30, 2015			September 30, 2015		December 31, 2015
Revenue	$	83,287	$	67,551		$	68,212	$	72,831
Cost of revenue	34,759		36,985			37,639		39,475
Gross profit	48,528		30,566			30,573		33,356
Selling, general and administrative expenses	19,459		18,997			18,773		20,199
Gain on sale of patent assets	—		(592		)	—		—
Operating income	29,069		12,161			11,800		13,157
Interest and other income (expense), net	121		934			876		(2,619		)
Income before provision for income taxes	29,190		13,095			12,676		10,538
Provision for income taxes	11,159		5,065			4,842		5,011
Net income	$	18,031	$	8,030		$	7,834	$	5,527

Net income per share⁽²⁾:
Basic	$	0.33	$	0.15		$	0.14	$	0.10
Diluted	$	0.33	$	0.14		$	0.14	$	0.10

Other Data:
Deferred revenue, including current portion	$	158,411	$	142,623		$	117,431	$	115,652
Stock-based compensation expense	$	3,881	$	4,644		$	4,603	$	4,466

⁽¹⁾See Note 12, "Commitments and Contingencies" and Note 11, "Debt" for further information regarding interest and other income (expense), net.

Basis of Presentation and Significant Accounting Policies (Details)	3 Months Ended	12 Months Ended			78 Months Ended
	Mar. 31, 2015	Dec. 31, 2016 USD ($) significant_client	Dec. 31, 2015 USD ($) significant_client	Dec. 31, 2014 USD ($) significant_client	Dec. 31, 2014 significant_client
Basis of Presentation and Significant Accounting Polcies [Line Items]
Allowance for Doubtful Accounts Receivable		$ 900,000	$ 0
Deferred Tax Assets, Valuation Allowance		875,000	1,097,000
Other than Temporary Impairment Losses, Investments		$ 0	5,100,000
BESP 5pct of Revenue		0.00%
Restricted cash (current and non-current)		$ 1,465,000	1,428,000
Capitalization of internal-use sofware and website development costs		1,300,000	2,300,000	$ 1,200,000
Amortization of internal-use sofware and website development costs		$ 1,500,000	$ 1,100,000	$ 1,300,000
Accounts receivable
Basis of Presentation and Significant Accounting Polcies [Line Items]
Number of Significant Clients \| significant_client		1	3
Sales Revenue, Subscription Fee
Basis of Presentation and Significant Accounting Polcies [Line Items]
Number of Significant Clients \| significant_client		0	0	0	0
Client One \| Accounts receivable
Basis of Presentation and Significant Accounting Polcies [Line Items]
Concentration of credit risk, percentage		39.00%	32.00%
Client Two \| Accounts receivable
Basis of Presentation and Significant Accounting Polcies [Line Items]
Concentration of credit risk, percentage			18.00%
Client Three \| Accounts receivable
Basis of Presentation and Significant Accounting Polcies [Line Items]
Concentration of credit risk, percentage			14.00%
Internal-use software
Basis of Presentation and Significant Accounting Polcies [Line Items]
Patent assets, useful life		3 years
Weighted Average \| Patents
Basis of Presentation and Significant Accounting Polcies [Line Items]
Patent assets, useful life		27 months			41 months
Maximum
Basis of Presentation and Significant Accounting Polcies [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Maximum \| Patents
Basis of Presentation and Significant Accounting Polcies [Line Items]
Patent assets, useful life		60 months
Minimum
Basis of Presentation and Significant Accounting Polcies [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Minimum \| Patents
Basis of Presentation and Significant Accounting Polcies [Line Items]
Patent assets, useful life		24 months

Net Income Available to Common Stockholders (Detail) - Basic and Diluted Net Income Per Share Available To Common Stockholders - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Basic:
Net income	$ 1,733	$ 8,115	$ 4,150	$ 4,237	$ 5,527	$ 7,834	$ 8,030	$ 18,031	$ 18,235	$ 39,422	$ 39,341
Basic shares:
Weighted-average shares used in computing basic net income available to comon stockholders									50,462	54,432	53,444
Diluted shares:
Dilutive effect of stock options and restricted stock units using treasury-stock method									539	978	1,374
Weighted-average shares used in computing diluted net income available to common stockholders									51,001	55,410	54,818
Net income per common share available to common stockholders:
Basic	$ 0.04	$ 0.16	$ 0.08	$ 0.08	$ 0.10	$ 0.14	$ 0.15	$ 0.33	$ 0.36	$ 0.72	$ 0.74
Diluted	$ 0.03	$ 0.16	$ 0.08	$ 0.08	$ 0.10	$ 0.14	$ 0.14	$ 0.33	$ 0.36	$ 0.71	$ 0.72

Financial Instruments - Schedule of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Assets:
Cash equivalents:	$ 33,356	$ 64,295
Short-term investments:
Short-term investments amortized cost	91,031	230,696
Short-term investments unrealized gains	9	3
Short-term investments unrealized losses	(163)	(254)
Estimated fair value	90,877	230,445
Level 1
Assets:
Cash equivalents:	30,286	54,663
Short-term investments:
Short-term investments fair value levels	20,083	123
Level 2
Assets:
Cash equivalents:	3,070	9,632
Short-term investments:
Short-term investments fair value levels	70,794	230,322
Level 3
Assets:
Cash equivalents:	0	0
Short-term investments:
Short-term investments fair value levels	0	0
Deferred payment obligations
Current liabilities:
Deferred payment obligations amortized costs		6,270
Deferred payment obligations unrealized gains		3,887
Deferred payment obligations fair value		2,383
Deferred payment obligations \| Level 1
Current liabilities:
Deferred payment obligations fair value		0
Deferred payment obligations \| Level 2
Current liabilities:
Deferred payment obligations fair value		0
Deferred payment obligations \| Level 3
Current liabilities:
Deferred payment obligations fair value	0	2,383
Corporate bonds
Short-term investments:
Short-term investments amortized cost	10,856	30,488
Short-term investments unrealized gains	0	3
Short-term investments unrealized losses	(13)	(93)
Estimated fair value	10,843	30,398
Corporate bonds \| Level 1
Short-term investments:
Short-term investments fair value levels	0	0
Corporate bonds \| Level 2
Short-term investments:
Short-term investments fair value levels	10,843	30,398
Corporate bonds \| Level 3
Short-term investments:
Short-term investments fair value levels	0	0
Commercial paper
Short-term investments:
Short-term investments amortized cost	4,296	5,493
Short-term investments unrealized gains	0	0
Short-term investments unrealized losses	(3)	(3)
Estimated fair value	4,293	5,490
Commercial paper \| Level 1
Short-term investments:
Short-term investments fair value levels	0	0
Commercial paper \| Level 2
Short-term investments:
Short-term investments fair value levels	4,293	5,490
Commercial paper \| Level 3
Short-term investments:
Short-term investments fair value levels	0	0
Municipal bonds
Short-term investments:
Short-term investments amortized cost	55,723	133,033
Short-term investments unrealized gains	0	0
Short-term investments unrealized losses	(65)	(96)
Estimated fair value	55,658	132,937
Municipal bonds \| Level 1
Short-term investments:
Short-term investments fair value levels	0	0
Municipal bonds \| Level 2
Short-term investments:
Short-term investments fair value levels	55,658	132,937
Municipal bonds \| Level 3
Short-term investments:
Short-term investments fair value levels	0	0
U.S. government and agency securities
Short-term investments:
Short-term investments amortized cost	20,033	61,559
Short-term investments unrealized gains	9	0
Short-term investments unrealized losses	(4)	(62)
Estimated fair value	20,038	61,497
U.S. government and agency securities \| Level 1
Short-term investments:
Short-term investments fair value levels	20,038	0
U.S. government and agency securities \| Level 2
Short-term investments:
Short-term investments fair value levels	0	61,497
U.S. government and agency securities \| Level 3
Short-term investments:
Short-term investments fair value levels	0	0
Equity securities
Short-term investments:
Short-term investments amortized cost	123	123
Short-term investments unrealized gains	0	0
Short-term investments unrealized losses	(78)	0
Estimated fair value	45	123
Equity securities \| Level 1
Short-term investments:
Short-term investments fair value levels	45	123
Equity securities \| Level 2
Short-term investments:
Short-term investments fair value levels	0	0
Equity securities \| Level 3
Short-term investments:
Short-term investments fair value levels	0	0
Commercial paper
Assets:
Cash equivalents:		7,997
Commercial paper \| Level 1
Assets:
Cash equivalents:		0
Commercial paper \| Level 2
Assets:
Cash equivalents:		7,997
Commercial paper \| Level 3
Assets:
Cash equivalents:		0
Municipal bonds
Assets:
Cash equivalents:	3,070	1,635
Municipal bonds \| Level 1
Assets:
Cash equivalents:	0	0
Municipal bonds \| Level 2
Assets:
Cash equivalents:	3,070	1,635
Municipal bonds \| Level 3
Assets:
Cash equivalents:	0	0
Money market funds
Assets:
Cash equivalents:	30,286	54,663
Money market funds \| Level 1
Assets:
Cash equivalents:	30,286	54,663
Money market funds \| Level 2
Assets:
Cash equivalents:	0	0
Money market funds \| Level 3
Assets:
Cash equivalents:	$ 0	$ 0

Financial Instruments - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Losses in other income (expense)	$ 290	$ 3,444	$ 0
Other-than-temporary impairment of short-term investments	$ 0	$ 5,096	$ 0
Percentage of marketable security investments that mature in one year	96.00%	87.00%
Percentage of marketable security investments that mature within one to five years	4.00%	13.00%
Short-term cost method investments	$ 0	$ 600
Funding from a syndicate participant		6,300
Other Debt Obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of loan from syndicate participant		2,383
Level 3 \| Other Debt Obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of loan from syndicate participant	$ 0	$ 2,383
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maturity period	1 year
Maturity period, year two through five	1 year
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maturity period, year two through five	5 years

Patent Assets, Net (Detail) - USD ($) $ in Thousands	12 Months Ended			78 Months Ended
Patent Assets, Net (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Amortization of patent assets	$ 9,600	$ 1,700	$ 1,500
Patents
Finite-Lived Intangible Assets [Line Items]
Amortization of patent assets	$ 159,000	$ 142,400	$ 119,700
Minimum \| Patents
Finite-Lived Intangible Assets [Line Items]
Patent assets, useful life	24 months
Maximum \| Patents
Finite-Lived Intangible Assets [Line Items]
Patent assets, useful life	60 months
Weighted Average \| Patents
Finite-Lived Intangible Assets [Line Items]
Patent assets, useful life	27 months			41 months

Patent Assets, Net (Detail) - Patent Assets, Net - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Patent assets	$ (70,400)	$ (6,890)
Accumulated amortization	(14,350)	(5,089)
Patent assets, net	212,999	254,560
Patents
Finite-Lived Intangible Assets [Line Items]
Patent assets	(932,283)	(824,258)	$ (665,290)
Accumulated amortization	(719,284)	(569,698)	(428,941)
Patent assets, net	212,999	254,560	$ 236,349
Additions \| Patents
Finite-Lived Intangible Assets [Line Items]
Patent assets	(117,457)	(160,664)
Accumulated amortization	(158,814)	(142,296)
Dispositions \| Patents
Finite-Lived Intangible Assets [Line Items]
Patent assets	(9,432)	(1,696)
Accumulated amortization	$ (9,228)	$ (1,539)

Patent Assets, Net (Detail) - Expected Future Annual Amortization Expense Of Patent Assets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
2017	$ 8,744
2018	8,215
2019	6,433
2020	6,321
Total estimated future amortization expense	212,999	$ 254,560
Patents
Finite-Lived Intangible Assets [Line Items]
2017	127,088
2018	64,157
2019	18,103
2020	3,651
Total estimated future amortization expense	$ 212,999	$ 254,560	$ 236,349

Property and Equipment, Net (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 171,623	$ 145,835	$ 123,138
Property and equipment, types
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 3,000	$ 1,700	$ 2,000

Property and Equipment, Net (Detail) - Property And Equipment, Net - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	$ 16,318	$ 11,658
Less: Accumulated depreciation and amortization	(9,370)	(6,925)
Total property and equipment, net	6,948	4,733
Internal-use software
Property, Plant and Equipment [Line Items]
Internal-use software	7,827	7,654
Leasehold improvements
Property, Plant and Equipment [Line Items]
Leasehold improvements	2,169	1,799
Computer, equipment and software
Property, Plant and Equipment [Line Items]
Computer, equipment and software	5,204	1,387
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Furniture and fixtures	935	818
Construction-in-progress
Property, Plant and Equipment [Line Items]
Construction-in-progress	$ 183	$ 0

Business Combinations - Narrative and Schedule of Business Acquisitions (Details) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
	Jan. 22, 2016	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Goodwill		$ 151,322				$ 19,978				$ 151,322	$ 19,978
Cash purchase consideration paid	$ 232,000									228,452	425	$ 2,286
Revenue		81,802	$ 88,461	$ 83,109	$ 79,735	72,831	$ 68,212	$ 67,551	$ 83,287	333,107	291,881	259,335
Operating income (loss)		8,063	$ 14,016	$ 8,135	$ 5,174					35,388	66,187	$ 63,928
Goodwill from business acquisition										145,984
Inventus Solutions Inc., Discovery Services
Business Acquisition [Line Items]
Current assets		19,357								19,357
Property, plant, equipment and other long term assets		3,347								3,347
Deferred tax asset		10,595								10,595
Current liabilities		(7,280)								(7,280)
Deferred tax liability		(5,477)								(5,477)
Other long term liabilities		(826)								(826)
Cash purchase consideration paid	$ 233,300
Inventus Solutions Inc., Discovery Services
Business Acquisition [Line Items]
Acquisition related costs										1,200
Revenue										66,100
Operating income (loss)										8,725
Transaction costs		13,500								13,500
Inventus Solutions Inc., Discovery Services \| Operating Segments
Business Acquisition [Line Items]
Goodwill		131,344				$ 0				131,344	$ 0
Goodwill from business acquisition										$ 145,984
Customer relationships
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life										9 years 3 months 18 days
Customer relationships \| Inventus Solutions Inc., Discovery Services
Business Acquisition [Line Items]
Intangible assets		58,000								$ 58,000
Trademarks
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life										4 years 10 months 25 days
Trademarks \| Inventus Solutions Inc., Discovery Services
Business Acquisition [Line Items]
Intangible assets		3,200								$ 3,200
Developed technology
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life										3 years
Developed technology \| Inventus Solutions Inc., Discovery Services
Business Acquisition [Line Items]
Intangible assets		$ 6,400								$ 6,400
Minimum \| Customer relationships
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life										9 years
Minimum \| Trademarks
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life										1 year
Maximum \| Customer relationships
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life										10 years
Maximum \| Trademarks
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life										6 years

Business Combinations - Schedule of Proforma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Document Fiscal Year Focus					2016
Operating income (loss)	$ 8,063	$ 14,016	$ 8,135	$ 5,174	$ 35,388	$ 66,187	$ 63,928
Revenue					336,047
Net income					$ 18,824
Pro forma earnings per share - basic (in usd per share)					$ 0.37
Pro forma earnings per share - diluted (in usd per share)					$ 0.37
Inventus Solutions Inc., Discovery Services
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Operating income (loss)					$ 8,725
Transaction costs	$ 13,500				$ 13,500

Goodwill - Summary of Changes in Goodwill (Details)	12 Months Ended
Goodwill - Summary of Changes in Goodwill (Details)	Dec. 31, 2016 USD ($)
Goodwill [Line Items]
Goodwill, Impairment Loss	$ 0
Goodwill [Roll Forward]
Goodwill	19,978,000
Goodwill from business acquisition	145,984,000
Foreign currency translation adjustments	(14,640,000)
Goodwill	151,322,000
Operating Segments \| Inventus Solutions Inc., Discovery Services
Goodwill [Roll Forward]
Goodwill	0
Goodwill from business acquisition	145,984,000
Foreign currency translation adjustments	(14,640,000)
Goodwill	131,344,000
Operating Segments \| Patent Risk Management
Goodwill [Roll Forward]
Goodwill	19,978,000
Goodwill from business acquisition	0
Foreign currency translation adjustments	0
Goodwill	$ 19,978,000

Intangible Assets, Net (Detail) - USD ($) $ in Thousands	12 Months Ended
Intangible Assets, Net (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 9,600	$ 1,700	$ 1,500

Intangible Assets, Net (Detail) - Intangible Assets, Net - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Acquired Finite-Lived Intangible Assets [Line Items]
Carrying amount	$ 70,400	$ 6,890
Accumulated amortization	(14,350)	(5,089)
Net carrying amount	$ 56,050	1,801
Proprietary data and models
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	3 years 8 months 12 days
Carrying amount	$ 2,100	2,100
Accumulated amortization	(2,006)	(1,694)
Net carrying amount	$ 94	406
Trademarks
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	4 years 10 months 25 days
Carrying amount	$ 4,879	1,720
Accumulated amortization	(2,439)	(1,645)
Net carrying amount	$ 2,440	75
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	3 years
Carrying amount	$ 5,802	120
Accumulated amortization	(1,978)	(120)
Net carrying amount	$ 3,824	0
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	9 years 3 months 18 days
Carrying amount	$ 55,719	1,050
Accumulated amortization	(6,323)	(659)
Net carrying amount	$ 49,396	391
Covenant not to compete
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	3 years
Carrying amount	$ 1,900	1,900
Accumulated amortization	(1,604)	(971)
Net carrying amount	$ 296	$ 929

Intangible Assets, Net (Detail) - Estimated Future Amortization Expenses For Intangible Assets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
2017	$ 8,744
2018	8,215
2019	6,433
2020	6,321
2021	6,321
Thereafter	20,016
Total estimated future amortization expense	$ 56,050	$ 1,801

Accrued Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Accrued liabilities	$ 16,798	$ 14,842
Other current liabilities	1,484	467
Accrued payroll-related expenses
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Accrued liabilities	11,516	11,105
Accrued expenses
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Accrued liabilities	$ 5,282	$ 3,737

Debt (Details) - USD ($)		12 Months Ended
Debt (Details) - USD ($)	Feb. 26, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Line of Credit Facility [Line Items]
Stated interest rate		3.00%
Interest expense		$ 3,015,000	$ 0	$ 0
Term Facility
Line of Credit Facility [Line Items]
Amount of credit facility	$ 100,000,000
Term of credit facility	5 years
Term Facility \| Minimum \| Base Rate
Line of Credit Facility [Line Items]
Percentage margin	1.25%
Term Facility \| Minimum \| LIBOR
Line of Credit Facility [Line Items]
Percentage margin	2.25%
Term Facility \| Maximum \| Base Rate
Line of Credit Facility [Line Items]
Percentage margin	1.75%
Term Facility \| Maximum \| LIBOR
Line of Credit Facility [Line Items]
Percentage margin	2.75%
Revolving Credit Facility
Line of Credit Facility [Line Items]
Amount of credit facility	$ 50,000,000
Term of credit facility	5 years
Revolving Credit Facility \| Minimum
Line of Credit Facility [Line Items]
Commitment fee on undrawn balances (as a percent)	0.35%
Revolving Credit Facility \| Maximum
Line of Credit Facility [Line Items]
Commitment fee on undrawn balances (as a percent)	0.45%

Debt - Schedule of Repayments of Principal (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Line of Credit Facility [Line Items]
Long-term debt, net	$ 94,584
Current portion of long-term debt	6,474	$ 0
Long-term debt, less current portion	88,110	$ 0
Term Facility
Line of Credit Facility [Line Items]
2017	6,875
2018	9,375
2019	11,875
2020	18,125
2021	50,000
Long-term debt, gross	96,250
Unamortized debt issuance costs	$ (1,666)

Commitments and Contingencies (Detail)		12 Months Ended
Commitments and Contingencies (Detail)	Mar. 31, 2012 defendant	Dec. 31, 2016 USD ($) insurance_policy	Dec. 31, 2015 USD ($) insurance_policy	Dec. 31, 2014 USD ($)	Mar. 31, 2013 ft²
Loss Contingencies [Line Items]
Area of real estate property (in square feet) \| ft²					67,000
Monthly base rent payments		$ 300,000
Operating Leases, Income Statement, Sublease Revenue		700,000	$ 600,000	$ 600,000
Rent expense related to non-cancelable operating leases		5,200,000	3,500,000	3,500,000
Proceeds from Deferred Payment Obligations			6,300,000
Proceeds from seller financing			5,900,000
Gain on extinguishment		463,000	$ 3,000,000	$ 0
Estimated Litigation Liability		$ 0
Loss Contingency, Number of Defendants \| defendant	5
Number of active insurance policies \| insurance_policy		181	89
Reserves for known and incurred but not reported claims		$ 900,000	$ 700,000
Maximum
Loss Contingencies [Line Items]
Monthly base rent payments		400,000
Other Debt Obligations [Member]
Loss Contingencies [Line Items]
Debt Instrument, Fair Value Disclosure			2,383,000
Fair Value, Inputs, Level 3 [Member] \| Other Debt Obligations [Member]
Loss Contingencies [Line Items]
Debt Instrument, Fair Value Disclosure		0	$ 2,383,000
Fair Value, Debt Instrument, Valuation Techniques, Change in Technique, Quantification of Effect		$ 1,900,000

Commitments and Contingencies - Aggregate Future Non-Cancelable Minimum Lease Payments For Operating Leases (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2015	$ 5,538
2016	5,408
2017	4,517
2018	619
Operating Leases, Future Minimum Payments, Due in Five Years	227
Operating Leases, Future Minimum Payments, Due Thereafter	611
Total future non-cancelable minimum lease payments	16,920
Less: minimum payments to be received from non-cancelable subleases	(3,295)
Total future non-cancelable minimum operating lease payments, net	$ 13,625

Stockholder's Equity (Detail) - USD ($)	3 Months Ended								12 Months Ended
Stockholder's Equity (Detail) - USD ($)	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	May 31, 2016	Feb. 10, 2015	Aug. 31, 2008
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized (in shares)	200,000,000				200,000,000				200,000,000	200,000,000
Common stock, par value per share (in dollars per share)	$ 0.0001				$ 0.0001				$ 0.0001	$ 0.0001
Preferred shares authorized (in shares)	10,000,000				10,000,000				10,000,000	10,000,000
Preferred stock par value per share (in dollars per share)	$ 0.0001				$ 0.0001				$ 0.0001	$ 0.0001
Additional shares of common stock reserved for issuance under the 2011 Plan (in shares)									2,000,000
Aggregate intrinsic value of stock options exercised									$ 900,000	$ 6,800,000	$ 7,000,000
Total fair value of stock options vested									1,300,000	3,300,000	6,200,000
Total fair value of RSUs vested									$ 11,900,000	$ 14,400,000	13,700,000
Shares withheld for tax withholdings (in shares)									418,201	354,446
Total payments for the employees’ minimum tax obligations to taxing authorities									$ 4,185,000	$ 5,097,000	4,928,000
Stock-based compensation expense	$ 4,178,000	$ 4,269,000	$ 4,899,000	$ 4,929,000	$ 4,466,000	$ 4,603,000	$ 4,644,000	$ 3,881,000
Restricted stock units granted under equity award plans (in shares)									2,644,000
Stock Repurchase Program, Authorized Amount	150,000,000								$ 150,000,000				$ 75,000,000
Stock Repurchase Program, Increase in Authorized Amount				$ 25,000,000								$ 50,000,000
Stock Repurchased, Accumulated Value	86,276,000				$ 26,175,000				86,276,000	26,175,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense									900,000	2,900,000	5,400,000
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense									16,900,000	$ 14,200,000	$ 11,600,000
Unrecognized compensation cost related to unvested equity awards	$ 34,500,000								$ 34,500,000
Weighted-average service period of unrecognized compensation cost related to unvested equity awards									2 years 7 months
Performance-based restricted stock units with a market condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate									0.00%		0.00%
PBRSUs granted (in shares)									116,000	54,000	200,000
Stock-based compensation expense									$ 600,000	$ 700,000	$ 800,000.0
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate									1.08%		1.11%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate									38.00%		48.00%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value									$ 6.28		$ 7.47
2011 and 2008 Plan \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Grant Exercise Price, Percent of Fair Value									100.00%
2011 and 2008 Plan \| Incentive stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Grant Exercise Price, Percent of Fair Value									110.00%
Share-based Compensation Arrangement by Share-based Payment Award, Amount of Options Owned, Percent									10.00%
2011 and 2008 Plan \| Performance-based restricted stock units with a market condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Threshold Days									90 days
Share-based Compensation Arrangement by Share-based Payment Award, Price per Share on Grant Date Multiplier									1.25
2011 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuance (in shares)	3,586,000								3,586,000		1,500,000
Additional shares of common stock reserved for issuance under the 2011 Plan (in shares)									2,000,000	1,000,000
2008 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuance (in shares)														9,019,474
Newly hired employees \| 2011 and 2008 Plan \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage									25.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period									36 months
Newly hired employees \| 2011 and 2008 Plan \| Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage									25.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period									3 years
Existing employees \| 2011 and 2008 Plan \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period									48 months
Existing employees \| 2011 and 2008 Plan \| Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period									4 years
Existing employees \| 2011 and 2008 Plan \| Performance-based restricted stock units with a market condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage									25.00%
Maximum \| 2011 and 2008 Plan \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Stock Options Exercise Period									10 years

Stockholder's Equity (Detail) - Activity Under Equity Award Plans And Related Information $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding (in shares)	3,159
Outstanding (in shares)	3,586
Outstanding (in shares)	2,340
Outstanding (in shares)	1,768
Outstanding (in dollars per share) \| $ / shares	$ 11.11
Outstanding (in dollars per share) \| $ / shares	$ 11.63
Shares authorized (in shares)	2,000
Options exercised (in shares)	(444)
Options exercised (in dollars per share) \| $ / shares	$ 8.51
Options forfeited (in shares)	(128)
Options forfeited (in shares)	128
Options forfeited (in dollars per share) \| $ / shares	$ 12.97
Restricted stock units granted (in shares)	(2,644)
Restricted stock units forfeited (in shares)	525
Outstanding (weighted-average contractual life)	4 years 2 months
Outstanding (intrinsic value) \| $	$ 2,939
Vested and exercisable
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested and exercisable (shares)	1,768
Vested and exercisable (in dollars per share) \| $ / shares	$ 11.63
Vested and exercisable (weighted-average contractual life)	4 years 2 months
Vested and exercisable (intrinsic value) \| $	$ 2,939
Vested and expected to vest
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested and expected to vest (shares)	1,768
Vested and expected to vest (in dollars per share) \| $ / shares	$ 11.63
Vested and expected to vest (weighted-average contractual life)	4 years 2 months
Vested and expected to vest (intrinsic value) \| $	$ 2,939

Stockholder's Equity (Detail) - Restricted Stock Unit Activity - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-vested units (in shares)	2,490
Non-vested units (in dollars per share)	$ 13.35
Granted (in shares)	2,644
Forfeited (in shares)	(525)
Non-vested units (in shares)	3,424	2,490
Non-vested units (in dollars per share)	$ 11.53	$ 13.35
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, intrinsic value	$ 36,979
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted	116	54	200
Restricted stock units granted
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	2,644
Granted (in dollars per share)	$ 10.95
Restricted stock units vested
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)	(1,185)
Vested (in dollars per share)	$ 13.16
Restricted stock units forfeited
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeited (in shares)	(525)
Forfeited (in dollars per share)	$ 13.32

Stockholder's Equity (Detail) - Weighted Average Assumptions To Estimate The Fair Value Of Equity Awards - Performance-based restricted stock units with a market condition - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%
Risk-free rate	1.08%	1.11%
Expected volatility	38.00%	48.00%
Grant date fair value	$ 6.28	$ 7.47

Stockholder's Equity Stockholder's Equity (Detail) - Share Repurchase - USD ($) $ / shares in Units, shares in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Equity [Abstract]
Share Repurchase Utilized	7,917	1,993
Stock Repurchased, Accumulated, Weighted Average Price	$ 10.90	$ 13.12
Stock Repurchased, Accumulated Value	$ 86,276,000	$ 26,175,000
Stock Repurchased and Retired During Period, Shares	5,924
Stock Repurchased During Period Weighted Average Price	$ 10.15
Stock Repurchased During Period, Value	$ 60,101,000	$ 26,175,000

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Deferred Tax Assets, Valuation Allowance	$ (222)	$ 1,097	$ 0
Net operating loss carryforwards	1,500
Unrecognized tax benefits	8,300	5,315	3,707	$ 2,036
Interest and penalties associated with unrecognized tax benefits	$ 600	$ 400	$ 681

Income Taxes (Details) - Income Before Income Tax Provision - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Domestic									$ 28,536	$ 65,445	$ 64,238
International									3,773	54	44
Total income before income tax provision	$ 5,978	$ 12,766	$ 6,586	$ 6,979	$ 10,538	$ 12,676	$ 13,095	$ 29,190	$ 32,309	$ 65,499	$ 64,282

Income Taxes (Details) - Components Of The Provision For Income Taxes - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current
Federal									$ (12,400)	$ (23,456)	$ (26,517)
State									(4,038)	(2,790)	(3,031)
Foreign									(11,097)	(12,406)	(9,611)
Total current provision for income taxes									(27,535)	(38,652)	(39,159)
Deferred
Federal									11,596	12,022	13,668
State									1,097	553	550
Deferred Foreign Income Tax Expense (Benefit)									768	0	0
Total deferred provision for income taxes									13,461	12,575	14,218
Income Tax Expense (Benefit)	$ (4,245)	$ (4,651)	$ (2,436)	$ (2,742)	$ (5,011)	$ (4,842)	$ (5,065)	$ (11,159)	$ (14,074)	$ (26,077)	$ (24,941)

Income Taxes Income Taxes (Details) - Net Deferred Tax Liabilities - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets:
Deferred revenue	$ 1,843,000	$ 1,438,000
Reserves and other	6,292,000	5,017,000
Stock-based compensation	5,682,000	5,701,000
Deferred Tax Assets, Goodwill and Intangible Assets	14,050,000	5,560,000
Operating Loss Carryforwards	7,246,000	0
Total deferred tax assets	35,113,000	17,716,000
Valuation allowance	(875,000)	(1,097,000)
Net deferred tax assets	$ 34,238,000	$ 16,619,000

Income Taxes Income Taxes (Details) - Reconciliation Of The Statutory Federal Income Tax To The Effective Tax - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Tax at statutory federal rate									$ (11,307)	$ (22,939)	$ (22,498)
State tax - net of federal benefit									(1,674)	(1,459)	(1,678)
Permanent differences									(1,000)	(663)	(879)
Foreign tax									(8,969)	(12,370)	(9,576)
Foreign tax credits									9,191	12,370	9,576
Foreign income not taxed at federal rate									0	(3)	(3)
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount									222	(1,097)	0
Other									(537)	84	117
Income Tax Expense (Benefit)	$ (4,245)	$ (4,651)	$ (2,436)	$ (2,742)	$ (5,011)	$ (4,842)	$ (5,065)	$ (11,159)	$ (14,074)	$ (26,077)	$ (24,941)

Income Taxes Income Taxes (Details) - Unrecognized Tax Benefits - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Balance as of January 1,		$ 5,315	$ 3,707	$ 2,036
Gross increase related to current period tax positions		1,567	1,606	1,672
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions	$ 1,841		2	0
Gross decrease related to prior period tax positions	$ (423)		0	(1)
Balance as of December 31,		$ 8,300	$ 5,315	$ 3,707

Related-Party Transactions (Detail) $ in Thousands	12 Months Ended
Related-Party Transactions (Detail) $ in Thousands	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($) board_member	Dec. 31, 2014 USD ($) board_member
Related Party Transaction [Line Items]
Number of Directors That Also Served On Client Boards \| board_member		4	5
Subscription fee revenue from related party transaction	$ 9,800	$ 9,300	$ 9,400
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party	800	300	$ 200
Receivables due from related parties	$ 1,300	$ 0

Segment Reporting (Detail) $ in Thousands	3 Months Ended								12 Months Ended
Segment Reporting (Detail) $ in Thousands	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Segment Reporting [Abstract]
Number of reportable segments									2
Segment Reporting Information [Line Items]
Revenue	$ 81,802	$ 88,461	$ 83,109	$ 79,735	$ 72,831	$ 68,212	$ 67,551	$ 83,287	$ 333,107	$ 291,881	$ 259,335
Cost of Revenue	49,696	50,830	49,070	47,666	39,475	37,639	36,985	34,759	197,262	148,858	124,435
Selling, General and Administrative Expense	24,043	23,615	25,904	26,895	$ 20,199	$ 18,773	$ 18,997	$ 19,459	100,457	77,428	71,679
Operating Income (Loss)	$ 8,063	$ 14,016	$ 8,135	$ 5,174					35,388	66,187	63,928
Depreciation and amortization expense									171,623	$ 145,835	$ 123,138
Inventus Solutions Inc., Discovery Services [Member]
Segment Reporting Information [Line Items]
Revenue									66,100
Operating Income (Loss)									8,725
Operating Segments [Member]
Segment Reporting Information [Line Items]
Adjusted EBITDA									225,579
Operating Segments [Member] \| Inventus Solutions Inc., Discovery Services [Member]
Segment Reporting Information [Line Items]
Cost of Revenue									33,397
Selling, General and Administrative Expense									23,990
Allocated Share-based Compensation Expense, Net of Tax									935
Depreciation and amortization expense									9,361
Adjusted EBITDA									19,021
Operating Segments [Member] \| Patent Risk Management [Member]
Segment Reporting Information [Line Items]
Revenue									266,995
Cost of Revenue									163,865
Selling, General and Administrative Expense									76,467
Operating Income (Loss)									26,663
Allocated Share-based Compensation Expense, Net of Tax									17,633
Depreciation and amortization expense									162,262
Adjusted EBITDA									$ 206,558

Segment Reporting - Subtotal Segment Adjusted EBITDA (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting [Abstract]
Depreciation and amortization expense									$ (171,623)	$ (145,835)	$ (123,138)
Stock-based Compensation, including payroll taxes									(18,568)
Nonoperating Income (Expense)									(3,079)	(688)	354
Income Tax Expense (Benefit)	$ (4,245)	$ (4,651)	$ (2,436)	$ (2,742)	$ (5,011)	$ (4,842)	$ (5,065)	$ (11,159)	(14,074)	(26,077)	(24,941)
Net income	$ 1,733	$ 8,115	$ 4,150	$ 4,237	$ 5,527	$ 7,834	$ 8,030	$ 18,031	$ 18,235	$ 39,422	$ 39,341

Segment Reporting - Revenue By Location (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenue	$ 81,802	$ 88,461	$ 83,109	$ 79,735	$ 72,831	$ 68,212	$ 67,551	$ 83,287	$ 333,107	$ 291,881	$ 259,335
Total revenue (in dollars)	$ 81,802	$ 88,461	$ 83,109	$ 79,735	$ 72,831	$ 68,212	$ 67,551	$ 83,287	$ 333,107	$ 291,881	$ 259,335
Total revenue									100.00%	100.00%	100.00%
United States
Revenue									$ 194,196	$ 186,439	$ 166,593
United States									58.00%	64.00%	64.00%
Total revenue (in dollars)									$ 194,196	$ 186,439	$ 166,593
Japan
Revenue									$ 25,288	$ 28,319	$ 17,847
United States										12.00%	14.00%
Other foreign country									11.00%
Total revenue (in dollars)									$ 25,288	$ 28,319	$ 17,847
Korea
Revenue									$ 37,200	$ 36,195	$ 36,849
Other foreign country									8.00%	10.00%	7.00%
Total revenue (in dollars)									$ 37,200	$ 36,195	$ 36,849
Rest of world
Revenue									$ 76,423	$ 40,928	$ 38,046
Other foreign country									23.00%	14.00%	15.00%
Total revenue (in dollars)									$ 76,423	$ 40,928	$ 38,046

Segment Reporting Total Assets by Segment (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Assets	$ 735,289	$ 658,561
Operating Segments [Member] \| Inventus Solutions Inc., Discovery Services [Member]
Segment Reporting Information [Line Items]
Assets	233,749
Operating Segments [Member] \| Patent Risk Management [Member]
Segment Reporting Information [Line Items]
Assets	$ 501,540

Selected Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 81,802	$ 88,461	$ 83,109	$ 79,735	$ 72,831	$ 68,212	$ 67,551	$ 83,287	$ 333,107	$ 291,881	$ 259,335
Cost of revenue	49,696	50,830	49,070	47,666	39,475	37,639	36,985	34,759	197,262	148,858	124,435
Gross Profit	32,106	37,631	34,039	32,069	33,356	30,573	30,566	48,528
Selling, general, and administrative expenses	24,043	23,615	25,904	26,895	20,199	18,773	18,997	19,459	100,457	77,428	71,679
Gain on sale of patent assets, net					0	0	(592)	0	0	(592)	(707)
Other Nonoperating Income (Expense)	(2,085)	(1,250)	(1,549)	1,805	13,157	11,800	12,161	29,069	(570)	(1,428)	(18)
Interest Income (Expense), Net					(2,619)	876	934	121
Income before provision for income taxes	5,978	12,766	6,586	6,979	10,538	12,676	13,095	29,190	32,309	65,499	64,282
Provision for income taxes	4,245	4,651	2,436	2,742	5,011	4,842	5,065	11,159	14,074	26,077	24,941
Net income	$ 1,733	$ 8,115	$ 4,150	$ 4,237	$ 5,527	$ 7,834	$ 8,030	$ 18,031	$ 18,235	$ 39,422	$ 39,341
Net income available to common stockholders per common share(1):
Basic	$ 0.04	$ 0.16	$ 0.08	$ 0.08	$ 0.10	$ 0.14	$ 0.15	$ 0.33	$ 0.36	$ 0.72	$ 0.74
Diluted	$ 0.03	$ 0.16	$ 0.08	$ 0.08	$ 0.10	$ 0.14	$ 0.14	$ 0.33	$ 0.36	$ 0.71	$ 0.72
Other Data:
Deferred revenue, including current portion	$ 130,408				$ 115,652	$ 102,691	$ 123,133	$ 139,992	$ 130,408	$ 115,652		$ 117,431	$ 142,623	$ 158,411
Stock-based compensation expense	$ 4,178	$ 4,269	$ 4,899	$ 4,929	$ 4,466	$ 4,603	$ 4,644	$ 3,881