by Ken Seddon, CEO, LOT Network

In 2022, LOT Network proudly introduced a significant new member to its growing network of companies – AT&T. LOT Network is a non-profit community of companies dedicated to eliminating the threat to innovation posed by patent assertion entities (“PAEs,” sometimes referred to as patent trolls). The value of the protection provided by the LOT Network community increases when any company joins. This is because LOT works through PAE-preventative licensing. When any member’s patent is transferred to a PAE, every other member is licensed to such patent, and the PAE is prevented from suing them.

AT&T’s membership in LOT provides a significant benefit to both LOT’s members and the innovation community at large.

AT&T is a central player in the information economy – and has been for a very long time

From its founding in the 19th century through the modern digital era, AT&T has been pivotal to the development of the information economy.

In recent years, the company’s pioneering efforts in 5G technology have propelled the development of high-speed mobile networks, laying the foundation for the Internet of Things (IoT) and a new era of connected devices. AT&T’s continuous investment in research and development has yielded innovations in cloud computing, cybersecurity, artificial intelligence, and data analytics.

AT&T’s patent portfolio relates to technologies critical to the modern economy – including substantive patents in wireless, artificial intelligence, and cybersecurity

The depth and breadth of AT&T’s innovative efforts are fully reflected in its world-class patent portfolio. AT&T’s over 10,000 patents are directed to technologies representing the modern digital economy. With substantial patent holdings in areas such as AI and machine learning, cybersecurity, and more, AT&T’s patent portfolio is much more than a telecommunications portfolio.

Through its LOT membership, AT&T strategically monetizes its portfolio responsibly without increasing systemic PAE risk

Many companies are looking to sell or monetize their patent portfolios. AT&T is no different and has made portions of its patent portfolio for sale. 0

Perhaps more importantly, though, it also reflects part of AT&T’s guiding philosophy – to “license or sell AT&T’s intellectual property to others for fostering continued innovation in society” (from AT&T’s website). This is where LOT comes in.

Any effort to transfer technology to those who can use it best comes with an inherent risk – that patents sold might be obtained by a PAE, who could then assert the patents against innovative companies, diverting critical resources towards litigation and away from R&D.

Joining LOT helps AT&T address this risk. As long as a company joins LOT before a patent is sold by a LOT member, it will forever be immune to being sued by a PAE over that patent. Since any company can join LOT, AT&T can monetize its portfolio and still enable a healthy innovation ecosystem.

AT&T’s induction into LOT significantly bolsters the collective defense against PAEs. AT&T’s participation echoes its commitment to drive innovation while simultaneously fortifying LOT’s shared protection against PAEs. This move ensures a healthier environment for tech advancements and illustrates AT&T’s continued influence in the global information sector.