Why join LOT?

900+ members are looking to eliminate costs from unwanted litigation

Lawsuits from Patent Assertion Entities (PAEs, sometimes called “patent trolls”) can be a drain on resources for any company. With software a primary PAE target, and software becoming an integral part of all industries — putting nearly all companies at risk of being sued.

That’s why leading companies have come together to form a collaborative, voluntary community to reduce this risk – one that grows in importance as the economic environment becomes increasingly uncertain.

PAE litigation is only expected to grow

The Great Recession of 2008 resulted in many companies selling patents to PAEs. In the years that followed, high-tech companies saw an immediate rise in the number of costly PAE lawsuits filed.

In today’s rocky economic climate, it pays to be prepared.

PAEs are the greatest litigation risk to high-tech companies

The #1 source of patent litigation risk ALL high-tech companies face is from PAEs, not operating companies.

The real irony of this problem is that over 80% of the patents that PAEs use to sue companies actually originated from other operating companies.

The best way for high-tech companies to reduce their future litigation costs is to join LOT Network — and to get their entire ecosystem suppliers, partners, customers, etc. to join as well.

Membership preserves the traditional uses of patents

Our members agree that if, and only if a patent falls into the hands of a PAE, each member of the community receives a license to that patent — rendering it useless against members in a PAE lawsuit.

At the same time, traditional uses of patents are unaffected: members are still free to sell or transfer their patents, participate in patent pools, license them for revenue, or assert them. LOT Network is purely defensive immunization against costly PAE litigation.

An ounce of prevention is worth millions in savings

The average PAE suit costs over $3 million to defend – and costs companies an aggregate $29 billion annually – money that could otherwise be put toward R&D, marketing or better serving customers. This is particularly worrying at a time when budgets are already being reduced.

Companies have growing concerns about risks coming from their supply chains, especially with smaller suppliers more likely to
face financial hardship and consequently offload assets during a recession. Many of our existing members are encouraging
their suppliers to become members too, to ensure the safety of the entire ecosystem.

An ounce of prevention is worth millions in savings

The average PAE suit costs over $3 million to defend. These lawsuits cost companies an aggregate $29 billion annually – money that could otherwise be put toward R&D, marketing or better serving customers. This is particularly worrying at a time when budgets are already being reduced.

Companies have growing concerns about risks coming from their supply chains, especially with smaller suppliers more likely to face financial hardship and consequently offload assets during a recession. Many of our existing members are encouraging their suppliers to become members too, to ensure the safety of the entire ecosystem.