Hangzhou Hikvision Digital Technology Co., Ltd. (“Hikvision”) is the world’s largest company in surveillance technology. In November 2022, the US government barred Hikvision from its market. Subsequently, Hikvision notified the LOT Network that it would be leaving in June 2023.
Hikvision owns more than 14,000 patents. These patents cover a wide range of technologies, including video compression and facial recognition, important not just for surveillance but also for advanced fields like the Internet of Things (IoT), the metaverse, and generative AI (see chart).
When a company is banned from selling in the US, it often looks to monetize its patents in other ways, including selling patents to patent assertion entities (PAEs). For instance, when the US government banned Huawei in 2019, Huawei sold patents to PAEs such as IP Edge, Crystal Clear Codec, and others. Hikvision’s decision to exit LOT Network could suggest it’s preparing to sell its patents to PAEs.
However, all patent assets in Hikvision’s portfolio at the time of its notice of exit—and for six months thereafter—are still covered by the LOT Network agreement. This means that any company that is a LOT Network member before December 6, 2023, will be protected from assertions by PAEs using these patents if they ever obtain them.
Sam Wiley is VP of Thought Leadership and Partnerships at LOT Network.