TCL and Juniper departures – and why speed matters when joining LOT Network

TCL and Juniper Networks are set to exit LOT Network, creating a timely and important moment for companies evaluating their IP risk strategies. In this post, Matthew Veale, LOT Network’s Vice President of Patent Analytics and Strategy, explores how these high-profile departures underscore the power of the Network Effect. Read on to learn why timing is critical when companies think about joining LOT Network.

LOT Network is widely recognized as a cornerstone of responsible intellectual property (IP) strategy, designed to protect innovators from non-practicing entities (NPEs) / patent assertion entities (PAEs), sometimes referred to as “patent trolls.” With over 5,000 members globally, including some of the world’s largest patent holders like Google, Red Hat, and Canon, members benefit from a collective safeguard against the misuse of patents. However, what many in the industry often overlook is a crucial dynamic that amplifies the value of membership: the Network Effect, and more specifically, the timing of when companies join LOT Network.

Understanding the Network Effect

The core value proposition of LOT Network is its cross-license mechanism. When a member sells or transfers patents to a PAE, those patents automatically become non-assertable against all other members. This means that the more members the network has and the more patents they hold, the greater the protective coverage for each individual member.

The Network Effect functions similarly to the concept of herd immunity in public health: as more participants join, the entire group becomes stronger and more resilient. But this protection is prospective, not retroactive. Members are only shielded from patent trolling if they are part of the network before a triggering event, such as when the sale of a patent to a PAE takes place.

This is where the speed of joining becomes not just a matter of convenience, but a strategic imperative.

The TCL and HPE Departure: A Time-Sensitive Risk

A timely example underscoring the urgency of early LOT Network enrollment is TCL leaving the community. A LOT member since 2020 and a global electronics manufacturer, it is scheduled to leave the Network in October 2025. TCL currently owns over 70,000 patent assets, many of which could become highly attractive targets for PAEs once they exit the protective umbrella of the LOT agreement.

Another emerging risk is Juniper Networks, a LOT member, which has now been officially acquired by HPE. HPE intends to withdraw Juniper from LOT Network in January 2026, and is expected to sell off a significant number of the acquired patents. This development is especially noteworthy given the technology classification overlap. The largest Cooperative Patent Classification (CPC) code for both HPE and Juniper is H04L: “Transmission of digital information”. HPE currently owns 5,000 patents in this category, while Juniper adds over 12,000 more meaning HPE has more than tripled its holdings in its primary area of patent activity. It’s important to note that HPE has a history of selling patents to non-practicing entities, with at least five confirmed sales to NPEs, possibly more. The risk is therefore not hypothetical; it is demonstrable and near-term.

After their respective departures, any of those patents could potentially be sold, transferred, or licensed without LOT Network’s protections, opening the door for assertion against companies that did not join before their leaving date. For businesses operating in overlapping technology spaces (such as display technology, mobile communications, or connected devices), this represents a substantial exposure.

The implications are twofold:

1. If you join LOT Network before TCL’s exit (October 2025) and/or before Juniper’s exit (January 2026), you will be protected from any of their patents that later fall into the hands of a PAE.
2. If you wait until after these exits, any of those assets could be used to litigate against your business and there would be no recourse through LOT’s mechanisms.

Continuous Asset Flow: A Feature, Not a Flaw

It is also important to address a common misconception: some may assume that the risk of exposure comes only from members who publicly announce their departures or asset divestitures. In reality, members are not obligated to disclose when they sell assets, nor is it required that those assets be transferred en masse.

Consider current LOT Network members such as IBM or Netgear, both respected technology firms and active participants in the secondary patent market. These companies routinely sell patents to third parties, including PAEs. Crucially, this activity is not against LOT Network rules; in fact, it underscores the value of the Network. Because any such transactions automatically trigger protections for fellow members, selling assets to NPEs does not introduce risk if you are already part of the Network.

This dynamic illustrates a key point: LOT Network does not prevent the flow of IP assets; it immunizes members from their misuse. The continual circulation of patents across the industry is inevitable. The only way to manage the risk is to be inside the Network before those transfers occur.

Why Waiting Is a Risky Strategy

For many legal and IP teams, joining LOT Network can be a back-burner item, viewed as an administrative step rather than a strategic move. However, treating LOT membership as something to “get to eventually” can result in real financial and legal exposure. Once a patent leaves the Network’s protections, it is too late.

The TCL and Juniper examples are particularly instructive because it is rare to have advance notice of a major member’s exit. In most cases, companies do not announce their intent to leave the Network or publicize large-scale patent sales until after the fact. This makes the timing of your membership critical.

Put simply: you cannot protect yourself retroactively.

The Strategic Case for Joining Now

Joining LOT Network is free for companies with revenues under $25 million and scales modestly with company size, making it one of the most cost-effective tools available for IP risk mitigation. The agreement is straightforward, non-intrusive, and does not restrict a company’s ability to enforce or monetize its patents.

In a patent ecosystem where the average cost of defending a PAE-initiated lawsuit can exceed $3 million, the ROI of LOT membership is self-evident.

But beyond the economics, LOT Network offers something rarer: strategic certainty in an unpredictable patent landscape. It allows members to focus on innovation and business growth rather than constant litigation defence.

Conclusion: Act Now

The upcoming member exits offer a rare and urgent moment of clarity in the often opaque world of patent risk. It’s a vivid reminder that the patent ecosystem is always in motion and that LOT Network’s protections hinge entirely on timing.

If your company is not yet a member, now is the time to act. The assets that could threaten your business tomorrow are already in circulation today. In a world where the cost of delay can be measured in millions, proactive protection is not optional – it is essential.