There’s a reason the world’s leading companies are LOT Network members
Join 5,600+ members collaborating to defend innovation and eliminate unwanted litigation costs
Lawsuits from patent assertion entities (PAEs, sometimes called “patent trolls”) can drain any company’s resources. With the convergence of technology, nearly all companies are at risk of being sued – whether or not you own patents.
That’s why leading companies have come together to form a collaborative, voluntary community to reduce this risk – one that enables a stronger patent system that protects innovation.
Increasing patent risk fuels the fire
Well-financed PAEs and litigation finance companies are buying patents that companies sell, as older patents and larger portfolios become expensive to maintain. USPTO leadership changes, policy decisions, M&A activity, and the trajectory of European Unitary Patent Court filings add to the risk.
In uncertain economic times, smart companies find low-cost ways to insulate themselves from PAE risk – risk that LOT has mitigated.
How LOT works
LOT Network is purely defensive immunization against costly PAE litigation. Our members are companies of all sizes and from all over the world; some have patents and others don’t. But we all agree that if, and only if, a patent falls into the hands of a PAE, each member of the community receives a license to that patent — rendering it useless against members in a PAE lawsuit.
Traditional uses of patents are unaffected: members are still free to sell or transfer their patents, participate in patent pools, license them for revenue, or assert them – including against other LOT members.
An ounce of prevention is worth millions in savings
The average PAE suit costs over $4 million to defend – money that could otherwise be put toward R&D, marketing, or better serving customers. This is particularly worrying at a time when budgets are already being reduced.
Companies have growing concerns about risks coming from their supply chains, especially with smaller suppliers that may offload assets if they face financial hardship. Many LOT members ensure the safety of the entire ecosystem by encouraging their suppliers and partners to join.