What is a PAE or patent troll?

Who is a PAE?

LOT Network does not believe in judging good patent behavior from bad; our members have agreed to a very specifically defined condition for when the license will apply. We consider a Patent Assertion Entity, or PAE (sometimes called “patent troll”) to be a patent holder, in combination with its affiliates, that generates more than 50% of its gross revenue from patent assertion. Please see the LOT Agreement for details.

Who is not a PAE?

Everyone else. Nearly all operating companies, including those who regularly enforce their IP rights (like member company IBM) are free to use their patents in all the traditional ways. LOT members can license other companies for revenue, participate in patent pools, assert their patents against anyone, and sell their patents to anyone, including to PAEs. In addition, most universities are not PAEs as they generate a majority of their income, if not all, from tuition.

Most PAEs are aware of LOT Network, and will check the membership roster on our site before filing a frivolous lawsuit.

How can I prevent costly PAE lawsuits?

A LOT Network membership, which protects you against PAE lawsuits involving millions of patent assets,
is the most cost-effective way to prevent unwanted litigation.

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