Asana, Canon Inc., Dropbox, Google, Newegg and SAP have formed the License on Transfer (LOT) Network , a cooperative patent-licensing agreement that will cut down on patent troll litigation and the growing practice of patent privateering. Patent litigation reached an all-time peak last year, with more than 6,000 lawsuits filed. Most of those suits came from non-practicing entities, also known as patent trolls—companies that don’t have a business outside of licensing and litigating patents. More than 70 percent of the patents used by trolls come from still-operating companies. Indeed, in a growing trend called privateering, companies are selling patents to trolls that then use those patents to attack other companies. In some cases, those companies arrange to get a cut of revenue generated from the trolls’ suits. The LOT agreement is a new kind of royalty-free cross-license meant to address these growing systemic problems. Member companies receive a license when the pate
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