Google, Canon and others join forces to stamp out NPEs
Major companies in the technology industry, including Google and Canon, have signed an agreement aimed at stemming the advance of aggressive non-practising entities (NPEs).
The agreement, called LOTNET, has seven members so far, all of which are looking to protect their patents.
It was officially announced today, July 10.
Under the terms of the agreement, if any member sells its patents all the other companies in the network will receive a royalty-free license to use the IP.
According to LOTNET, the plan will protect its members from being pursued if a sale ends up with its patents in the hands of certain types of NPEs.
“By reducing the number of patents potentially available to PAEs [Patent Assertion Entities, another name for NPEs], it mitigates the risk of costly litigation and allows such companies instead to focus on making and selling innovative products and services,” the LOTNET website states on its home page.
Certain types of NPEs, sometimes referred to as “patent trolls”, are known for filing multiple patent infringement lawsuits and demanding excessive licensing fees based on often frivolous and broad claims.
Earlier this year, WIPR reported that the top ten patent litigators in 2013 were NPEs, according to the legal analytics company Lex Machina.
In the last year, the US government has made several efforts to try and clamp down on the practise.
But in May the Patent Transparency and Improvements Act, set up to try and improve efficiency in the patent system, was put on hold.
“It doesn’t matter what you make or sell—[NPEs] will target any operating company,” LOTNET said.
It added: “More than 10,000 companies have been sued at least once by a PAE, in more than 14,000 litigations against more than 33,000 defendants. Will you be the next target?”
LOTNET said its members collectively own around 300,000 patents and have an estimated revenue exceeding $100 billion.
Membership, which is open to all, costs between $1,500 and $20,000 annually depending on a company’s revenue.
As it stands, the seven members are Asana, Canon, DropBox, Google, Newegg, Pure Storage and SAP AG.
