Lot Network Agreement

The conditional license of the LOT network applies only to patents that are on the network at the time a company joins the consortium. When a company joins LOT after a LOT member has sold a patent, former LOT members are protected by the conditional license, while the new member is still faced with the potential for infringement action on that patent. As of December 2016, the LOT network had 100 members, about twice as many as in January 2016. Annual fees depend on the company`s revenues, but range from $1,500 to $20,000 per year (for example, the price of a single patent application). [9] On September 1, 2016, LOT announced that it would waive annual dues for members of companies with annual sales of less than $5 million by March 1, 2017. [10] This pricing structure facilitates the membership of start-ups and small businesses also covered by PAs. [8] More than half of the businesses sued by EAP generate less than $10 million in sales. [11] In the event that a larger LOT member acquires a smaller member, the acquired company may transfer its patent license rights to its acquirer. [10] Of the more than 275 LOT Network members, one-third of the network`s members are startups with less than $25 million in annual revenue. Given the burden that membership in LOT imposes on the patents of network members, it seems a little strange that so many startups have chosen to join the consortium, because the conditional license effectively closes the options under which a start-up should sell its patents to an EAP when they leave the market. Tags:Arista, Canon, Cisco, Google, Ken Seddon, Licensing Agreements, LOT Network, PAE Litigation, Patent Entities, Patent Litigation, Patent Trolls, Patent Value, red hat, Risk Management, Uber, Waymo “Remember as a backup that is attached to a patent,” Seddon said.

“While the patent is held by an operating company, all traditional uses of patents are fair play. It is a live patent that can be invoked against anyone inside or outside the network. But if it ever falls into the hands of an EAP, the backup blows and the patent is disabled against other companies that were members of LOT at the same time the patent was in the network. To assess the success of the LOT network, it would be necessary to know exactly how many patents were sold by member companies. Only then will members be able to know for how many patents they have obtained cross-licensing and, therefore, how many patents they cannot claim against them. In December 2016, LOT Network was able to share for the first time the number of assets that had left the network. Through a partnership with IP analytics company Innography, LOT Network was able to track the sale and other patent orders of member companies. The results? 42 different LOT members had sold a total of more than 42,000 assets worldwide.

At the time of publication of these results, lot Network had more than 585,000 assets. LOT members accept a reciprocal non-aggression pact in which they promise that none of their patents will ever be used by a patent to sue another member; However, members can continue to sell patents and sue other members.