Trend Micro joins LOT Network to fight ‘patent trolls’
Cybersecurity provider Trend Micro is joining the LOT Network, in a bid to combat the threat posed by ‘patent assertion entities’ (PAEs), which it says drain “tens of billions of dollars” from the global economy.
“By joining the LOT Network we’re taking a united stand against the patent trolls, and passing on the protections we get through our membership to our customers,” said Felix Sterling, chief legal officer, Trend Micro.
Sterling continued that the PAE lawsuits “distract innovative companies from the important task of serving their customers”.
Although PAE-driven lawsuits have been a problem for decades, the last ten years has seen a 500% increase in volume, Trend Micro claimed.
Moreover, even though fewer than 1% of defendants are eventually found to have infringed a valid patent, over 80% choose to settle before trial, leaving less money available for innovation, the company said.
The LOT Network, a non-profit community, was founded in 2014, and now has over 500 members, including some of the world’s biggest tech companies such as Amazon, Facebook, Google, Microsoft, Cisco, and now IBM.
Just a few days ago, IBM also joined the LOT Network, following the technology giant’s purchase of Red Hat, a LOT Network founding member.
IBM's inventions span areas such as AI, blockchain, cloud computing and internet security. In 2019, patents were granted to a group of more than 8,500 IBM inventors in 45 different US states and over 50 countries.
Members agree that if, and only if, a member’s assets fall into the hands of a so-called patent troll, they will grant a licence to all other members, thus rendering them immune from PAE litigation using those assets.
Tech and auto companies (including Apple, BMW, Microsoft, and Samsung) have also recently urged the European Commission to take action to stop European courts from issuing automatic injunctions in favour of so-called ‘patent trolls’.
In a letter to the new commissioner for the internal market, Thierry Breton, the companies said innovation was being undermined by an imbalance in the European legal system.
“Automatic injunctions make Europe more and more attractive to PAEs. As the litigation environment has become less hospitable to PAEs in the US, we have witnessed their rise in Europe,” the letter reads.
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