BEAVERTON, Ore.--(BUSINESS WIRE)--LOT Network announced today that its community, which protects many of the world’s leading businesses including Dropbox, Khan Academy, Ford, GitHub, JP Morgan Chase, Mazda, Uber, Asana, and many start-ups from costly patent lawsuits, is growing. With a revised member agreement and now forward-thinking new members Hyundai Motor Company and Kia Motors Corporation, with significant patent portfolios, LOT strengthens its efforts to protect and support innovation by reducing the risk of litigation from PAEs, otherwise known as patent trolls.
The LOT Network is a not-for-profit community of companies across all industry verticals formed to immunize its members from costly patent lawsuits by PAEs. Its innovative community-based model offers a permanent cure for the costly PAE problem, preventing patent troll lawsuits instead of simply treating the symptoms of costly litigation.
“We were attracted to the permanent protection that LOT offers for its members and we value the level of commitment that each member of LOT has made in the fight against costly, predatory PAEs,” said Eon Youl Shin, Director of Intellectual Property Development Group at Hyundai Motor Company. “Hyundai and Kia are both committed to offering the highest-quality vehicles. By joining the LOT Network, we will use this opportunity to focus more on R&D rather than using resources to fight against unnecessary lawsuits from NPEs. I hope this will help the automobile industry build healthier environment for its customers.”
From 2005 to 2014, patent troll lawsuits jumped by 500 percent, according to The Washington Post. PAE lawsuits drain an estimated $80 billion from the U.S. economy per year, siphoning away resources that could otherwise be used to fuel growth and innovation and provide more value for customers.
A whopping 81 percent of the patents that PAEs use in high-tech litigation attacks are actually acquired from other operating companies. LOT Network is providing the most cost effective solution in the fight against PAEs by uniting a community of companies who believe that companies should be free to use patents for traditional purposes, but that a company’s executive team should be focused on building better products for consumers, not defending themselves against wasteful lawsuits.
Hyundai and Kia bring more than 32,000 patent assets to LOT Network which now has over 360,000 world wide patent assets. With the addition of Hyundai and Kia, LOT also has over 105,000 US patents and applications – a significant milestone which LOT achieved in less than 18 months from its formation.
The value of the LOT Network is rooted in its universal member agreement that applies equally to all companies regardless of the size of their portfolio, their industry, or country of origin. Simply stated, the LOT Agreement provides its members with a license to any patent assets that members may transfer to a PAE. This solution immediately and dramatically reduces the risk of PAE litigation for every company that joins. LOT offers an innovative and permanent cure in that all LOT Network members are fully protected from a patent once it falls into the hands of a patent troll.
Recently, LOT Network members unanimously approved a new, simpler member agreement to clarify that the agreement impacts only patents transferred to a PAE. Under the updated agreement, LOT members can use their patents as they choose for traditional uses, such as transferring them to other legitimate operating companies. Most significantly, LOT allows members to leverage the value of their patent portfolio by networking with other like-minded companies who believe good corporate citizens do not monetize their patents through patent trolls.
“We believe this agreement will continue to scale quickly across industries and with companies of all sizes,” said Hideki Sanatake, Deputy Group Executive, Corporate Intellectual Property and Legal Headquarters at Canon Inc., one of the founding board member companies. “It is easy to understand and provides the level of protection our business and customers need while still preserving the value of our patent portfolio.”
About LOT Network: LOT Network is a not-for-profit community of companies across verticals committed to protecting its members against the needless costs and risks of patent trolls, so that companies can spend their money instead on delivering better products for their customers. There are already over 368,000 patent assets, including more than 108,000 issued US patents, protected in the LOT Network. For more information or to join see www.lotnet.com.
About Hyundai Motor Company:
Established in 1967, Hyundai Motor Company is committed to becoming a lifetime partner in automobiles and beyond. The company, which leads the Hyundai Motor Group, an innovative business structure capable of circulating resources from molten iron to finished cars, offers top-quality best-sellers such as Elantra, Sonata and Genesis. Hyundai Motor has eight manufacturing bases and seven design & technical centers worldwide and in 2015, sold 4.96 million vehicles globally. With almost 100,000 employees worldwide, Hyundai Motor continues to enhance its product line-up with localized models and strives to strengthen its leadership in clean technology, starting with the world’s first mass-produced hydrogen-powered vehicle, ix35 Fuel Cell.
About Kia Motors Corporation:
Kia Motors Corporation (www.kia.com) – a maker of quality vehicles for the young-at-heart – was founded in 1944 and is Korea’s oldest manufacturer of motor vehicles. Over 3 million Kia vehicles a year are produced in 10 manufacturing and assembly operations in five countries which are then sold and serviced through a network of distributors and dealers covering around 180 countries. Kia today has around 49,000 employees worldwide and annual revenues of nearly US$45 billion. It is the major sponsor of the Australian Open and an official automotive partner of FIFA – the governing body of the FIFA World Cup™. Kia Motors Corporation’s brand slogan – “The Power to Surprise” – represents the company’s global commitment to surprise the world by providing exciting and inspiring experiences that go beyond expectations.
For more information about Kia Motors and our products, please visit our Global Media Center at www.kianewscenter.com.