Dear Members and Friends,
LOT Network has always been about protecting innovation, so I’m thrilled to announce a new initiative that our Board has recently approved: we will waive the annual fee for any start-up with less than $5M in annual revenues who wants to join LOT Network. You might have seen coverage on this in TechCrunch.
Why do this? We’ve noticed a shift in the tactics that trolls are using to attack companies. As you may have experienced yourself, over half of companies sued by trolls make less than $10M a year; trolls know that it costs on average $3.2 million to defend yourself in a patent lawsuit. Earlier stage companies often lack the legal resources and expertise with which to defend themselves, and trolls use this to leverage a quick settlement. Trolls prey on the very companies who seek to revolutionize the way we view the world; we see these attacks as direct hits on our collective ability to innovate.
By protecting early stage companies from frivolous litigation, we’re helping them to focus their resources on the commercialization of great ideas.
How does it work? Simple: between now and March 1, 2017, any new company that joins LOT Network with less than $5M in revenues pays no annual membership fee – and continues to enjoy a free membership so long as their revenues are below $5M. Once they surpass $5M in annual revenues, the companies agree to be paying members of LOT Network for at least the same number of years for which they were granted a fee waiver.
We hope that this makes it easier for early stage companies to protect themselves against needless costs and painful distractions. Are you or someone you know interested in joining our community? Feel free to share this message, download and sign the agreement, or reach out to me with questions anytime.