[Ip-health] The LOT patent pool
james.love at keionline.org
Thu Jun 18 05:28:17 PDT 2015
I should have quoted more sections of the web page. It seems pretty
[Also, there is an update on the number of patents:
"LOT Network is a forward-looking community that promotes innovation by
reducing the risk of litigation from Patent Assertion Entities. There are
already over 325,000 patent assets, including more than 70,000 issued US
patents in the LOT Network. " ]
More on the way the LOT patent pool works here: from the web page here:
How it works
In the event that patents held by a LOT Network participant are
transferred through a triggering event (e.g., a transfer to an entity
other than another LOT Network participant), every active LOT Network
participant as of the date of transfer will have its license to the
transferred patents become effective. This arrangement immediately reduces
the risk of PAE litigation to participants.
Should a LOT Network participant be acquired outright by a PAE, or become a
PAE itself, other participants active at the time of such a transfer will
obtain licenses to its entire patent portfolio.
Exceptions to the license on transfer
There are two principal exceptions where the transfer of patents will not
trigger a license under the LOT Agreement. The first is a transfer of
patents to another current LOT Network participant. The second is a
transfer that is part of a legitimate M&A or spin-out activity. In
addition, licenses granted to LOT Network participants are subject to
defensive termination in the event the LOT Network licensee files offensive
patent litigation against the transferee (a so-called defensive
These exceptions allow companies sufficient room to utilize and dispose of
their intellectual property in ways that maintain value to support the
growth and performance of their business, while giving active participants
a royalty-free license to protect them from patent sales to
non-participants, e.g., PAEs.
Any company may join
Companies join LOT Network by signing the LOT Agreement and paying a
nominal annual fee to help cover administrative costs. It’s that simple.
Any company may join LOT Network, whether large or small, from any
industry, and with any business model. The more companies that join LOT
Network, the greater the benefit that each derives.
We believe in innovation. We believe in the patent system. But we also
believe the transfer of patents to PAEs perpetuates a vicious cycle that is
detrimental to innovation and costly to consumers and shareholders.
If you share our belief that companies owe it to their customers and to one
another to stop this vicious cycle that is costing tens of billions of
dollars annually, we invite you to join us.
Click here to download the LOT Agreement and begin protecting your company
And a few sections from the license:
1. License Grant
1.1. Grant of License and Release.
(a) Grant. Subject to the conditions and limitations of this LOT Agreement,
each LOT User, on behalf of itself and each of its Affiliates, as
Licensors, grants to every LOT User and its Affiliates, including its
After-Acquired Affiliates (if any), the following:
(i) A worldwide, royalty-free, non-exclusive, non-sublicensable,
non-transferable license under such Licensor’s Subject Patent(s), to make,
have made (subject to the provisions of Section 1.1(b) below), operate,
have operated (subject to the provisions of Section 1.1(b) below), use,
sell, offer for sale, import, or otherwise distribute Licensed Products and
Services, provided that such license shall become effective only: (1)
immediately prior to an applicable Triggering Event, (2) for the benefit of
LOT Users (and their respective Affiliates including their AfterAcquired
Affiliates, if any) that are Licensees for the applicable Triggering Event,
and (3) with respect to Subject Patents that are Triggered Patents of the
applicable Triggering Event; and
(ii) An irrevocable release of any and all claims, liabilities and damages
for Infringement of such Licensor’s Subject Patents, provided that such
release shall become effective only: (1) immediately prior to an applicable
Triggering Event, (2) for the benefit of LOT Users (and their respective
Affiliates including their After-Acquired Affiliates, if any) that are
Licensees for the applicable Triggering Event, (3) with respect to Subject
Patents that are Triggered Patents of the applicable Triggering Event, and
(4) with respect to actions taken or activities performed prior to such
Triggering Event which would have been licensed under clause (i) of this
Section 1.1(a) had the license recited in such clause (i) been in effect at
the time such actions were taken or activities performed.
For the avoidance of doubt, the right to distribute Licensed Products and
Services under the License includes, in the case of software, distribution
by licensing of copies of such software.
Inducement or Contributory Infringement. The License includes the right of
the LOT User and its Affiliates, including its After-Acquired Affiliates
(if any), to engage in activities recited in clause (i) of this Section
1.1(a) with respect to any products and services that, in the absence of
this LOT Agreement, would constitute inducement to infringe or contributory
infringement (or infringement under any other analogous legal doctrine in
the applicable jurisdiction) of the Licensor’s Subject Patents, subject to
the effectiveness limitations of Sections
1.1(a)(i) and 1.1(a)(ii)
On Thu, Jun 18, 2015 at 12:36 AM, Erik Josefsson <
erik.hjalmar.josefsson at gmail.com> wrote:
> -----BEGIN PGP SIGNED MESSAGE-----
> Hash: SHA1
> Why is LOT not a cartel?
> On 17/06/15 17:38, Jamie Love wrote:
> > This patent pool claims to manage 300,00 patents, including more than
> > 50,000 US issued patents.
> > The current membership list includes innovative companies such as
> > Ford Motor Company, Google, JPMorgan Chase Bank, Mazda, Pandora, Red
> > SAP, SAS Institute, and Uber, among others.
> > http://www.lotnet.com/lotnet-solution/index.cfm
> > Who we are and what we do
> > LOT ("License on Transfer") Network was established by leading
> > companies to reduce the number of patent infringement claims received
> > non-practicing entities that purchase patents for the sole purpose of
> > enforcing them (called Patent Assertion Entities, or PAEs). Companies
> > participating in LOT Network obtain licenses effective upon the
> > patents by other participants to non-participants, e.g., PAEs.
> > As of the launch of the organization in July 2014, the LOT Network had
> > already contained nearly 300,000 patent assets, including over 50,000 US
> > issued patents. Two of the LOT Network Users can be found on the 2013
> > 10 US patent recipients list.
> > By reducing the number of patents potentially available to PAEs, it
> > mitigates the risk of costly litigation and allows such companies
> > to focus on making and selling innovative products and services. For
> > information on how to join the LOT Network, click here.
> > _______________________________________________
> > Ip-health mailing list
> > Ip-health at lists.keionline.org
> -----BEGIN PGP SIGNATURE-----
> Version: GnuPG v1
> -----END PGP SIGNATURE-----
> Ip-health mailing list
> Ip-health at lists.keionline.org
James Love. Knowledge Ecology International
KEI DC tel: +1.202.332.2670, US Mobile: +1.202.361.3040, Geneva Mobile:
More information about the Ip-health