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10 August 2016Patents

Honda and General Motors join patent pledge

Car companies Honda and General Motors have joined a group that aims to protect its members by thwarting non-practising entities also known as patent assertion entities (PAEs).

Honda joined the License on Transfer (LOT) Network at the start of the month while General Motors joined in July, it was revealed today.

The LOT Network, set up in 2014, ensures members sign an agreement to grant other members a perpetual, royalty-free licence to their patents even if the patent falls out of their control, known as a triggering event.

Triggering events include a transfer of a patent, or a change in control in which the surviving entity is a PAE.

The network was launched by Google and members have pledged that none of their patents will be used by PAEs or ‘trolls’, to file a lawsuit against a member company.

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