LOT Network is the non-profit community of companies providing the cure for patent assertion entities (PAEs), aka “patent trolls.” 81% of the patents that PAEs use to sue companies originate from operating companies.
To immunize the community from PAEs, all LOT Network members sign the exact same 10-page agreement that gives fellow members a free license (immunity) to any patent asset that is transferred to a PAE.
At the same time, LOT Network members are free to use their patents for all the traditional uses: e.g. assert their patents against other members, use them for cross-licensing or as collateral to secure financing, or sell their patents to anyone they choose.
The only exception under the Patent Transfer Program is that a startup cannot assert the 3 assets they select against LOT Network members who were LOT Network members at the time the startup received them. However, startups are free to assert the patents they select against anyone who joins LOT Network after them, and as is true with all patents covered by the LOT Agreement, assert them against anyone not in LOT Network.
LOT Network has grown tremendously, and now has over 220 members including, most recently, American Express, FIS, Facebook, Oracle, Volkswagen, Cisco, Tesla, Daimler, and Alibaba. Additional members include Red Hat, Google, Canon, Dropbox, SAP, Pure Storage, Amazon, Netflix, JP Morgan Chase, and others, including more than 70 startups. Please see (here) for a full list of LOT Network members.