“The generosity of our member donors in providing these patents to LOT Network for this program reflects the spirit of the LOT Network community,” said Ken Seddon, CEO of LOT Network.
PHOENIX (PRWEB) May 10, 2018
LOT Network, the non-profit organization that immunizes members from the risks and costs of litigation brought by Patent Assertion Entities (PAEs), today announces two new programs designed to enrich and protect the global startup community. First, LOT Network is launching the Patent Transfer Program, under which qualifying startups that are, or become, LOT Network members, may receive three free patents from LOT Network. Second, the organization is expanding LOT Network’s free membership tier to make LOT Network membership available at no cost to any operating company having up to $25 million in annual revenue.
LOT Network members such as Canon, Dropbox, Google, Lenovo, Red Hat, SAP and others have spent billions on R&D and created highly valuable patent portfolios. LOT Network believes that startups fuel innovation and has committed to share patents provided by its members with startups to promote and fuel further innovation, and to encourage these startups to join the LOT Network community.
The first 200 operating companies in LOT Network with $500K-$25M in annual revenue or $500K-$25M in financing in the past 18-months are eligible to receive these patent assets at no cost to them. Going forward, LOT Network expects additional asset contributions from both members and non-members, which may include universities, individuals and operating companies.
“We understand startups have tight budgets and limited resources that they must allocate strategically,” said Michael Cunningham, executive vice president & general counsel, Red Hat. “They have to focus on investing in areas that will grow their businesses, such as hiring, product development, and sales, and often do not have the capacity for other uses of capital. LOT Network is seeking to lend assistance. And once the patents are transferred to startups under the program, they have full ownership of the patents, free of charge.”
“The generosity of our member donors in providing these patents to LOT Network for this program reflects the spirit of the LOT Network community,” said Ken Seddon, CEO of LOT Network. “It is humbling to see some of the most IP savvy companies in the world make such a sincere effort to share in their successes with the startup community. We are a non-profit, and thus, work for our members. Our 70+ startup members have been asking for access to patents, and I am really proud that as a community we are able to fill that need.”
Additionally, due to its rapid growth over the past year, LOT Network is now able to broaden the scope of free participation in its community. Previously, LOT Network offered free membership to companies with up to $5M in annual revenue. Effective immediately, any operating company with up to $25M in annual revenue can receive free membership in LOT Network.
The LOT Network community has experienced tremendous growth from well-known brands including Facebook, Volkswagen, Cisco, Target, Ford, Amazon and more. As a result, LOT Network members are now immunized against one million patent assets falling into the hands of a PAE. Every LOT Network member signs the same agreement that gives fellow members a free license (immunity) to any patent asset that is transferred to a PAE. At the same time, LOT Network members are free to use their patents for all the traditional uses, such as asserting their patents against other members, cross-licensing and selling their patents.
“LOT Network was created to protect innovation, and has grown quickly. The network now covers over one million patent assets that can’t be asserted against the membership by PAEs,” said Mike Lee, head of patents, Google. “We think the protections afforded by LOT Network should be available to established and startup companies alike, and do not want cost to be a barrier to participation. We’re confident that LOT Network’s move to extend free membership and gift patents to startups will have a positive impact on their continued innovation.”
About LOT Network:
LOT Network Inc. is a non-profit community of companies protecting its members from costly Patent Assertion Entity (PAE) litigation. LOT Network members can be permanently immunized to over one million worldwide patents and counting. LOT Network members include market leaders such as JP Morgan Chase, Ford, Tesla, Alibaba, GM, etc. as well as smaller companies across industries. Please visit http://www.lotnet.com to learn more.