Car maker Daimler and the online learning service Udemy are some of the new additions into the LOT Network. The Google initiative, which began in 2014, is tasked with protecting companies against so-called patent trolls. Cisco Systems, Inc. (NASDAQ:CSCO) and work-collaboration service Slack also joins the network, which incorporates some of the big players in the automotive market the likes of GM and Honda.
Other members of the alliance include financial firms like J.P. Morgan. The pact has had tremendous growth to a tune of over 650,000 patents having begun with just a few tech companies.
There has been a new sense of urgency to join the network
How does the LOT work? Basically, members are expected to put in conditions on their patents in an effort to limit their use by trolls. Surprisingly, the new government administration has not shown any interest in patent reform, a situation that has triggered continued public trading of patent trolls.
This has turned out to be a competitive disadvantage for many companies that have dillydallied to join the network and they are now in haste to do so. It is somewhat a legal immunity network for patent lawsuits.
There is great value in being part of the LOT network
The vice president of legal at Udemy, Alexandra Sepulveda says, “Companies face serious financial and operational risk when it comes to their patents and have to think about innovative ways to protect their assets.”
Part of the LOT network is strongly recommended. The fact that it is somewhat a legal immunity means that it would save companies the time and energy they may be required to fend off patent trolls. Nonetheless, there are still so many patent litigations and apparently, a majority of them involve large companies, which are trying to force in their patents.
Similar mutual-defense pacts have been witnessed within other top Android phone makers, which according to Ken Seddon; the CEO of LOT is an encouraging move. In the meantime, Cisco’s stock closed at $33.00 a fall of $0.41 or 1.23%.