Yokogawa Electric Corporation announces it has joined LOT Network, a global non-profit organization that aims to protect its members from patent assertion entities (PAEs). The move reflects the increasingly strategic role of intellectual property as the company seeks to support customers on their digital transformation journeys.
As industries of all sectors experience an unprecedented convergence of technologies, Yokogawa's participation in LOT Network reaffirms the company's commitment to innovate together with its customers and to align with the global community of technology companies through the promotion and protection of open innovation. To foster open innovation, for example, Yokogawa has been developing and implementing collaborative approaches. These are frameworks for establishing effective industry-academia-government collaboration (inbound activities) and utilizing in-house intellectual property (outbound activities).
Appropriate use of patents protects innovation
Tsuyoshi Abe, a Yokogawa senior vice president, and head of the Marketing Headquarters, commented, "At Yokogawa, as part of our business transformation, we are advancing more into the Industrial Internet of Things space; consequently the use of information technology is increasing significantly. With our membership in LOT Network, we will be able to continue to thrive with our co-innovation DNA while protecting the appropriate uses of patents."
PAEs acquire patents for the purpose of monetizing them through litigation, a process which is costly for active companies and can derail innovation. By joining LOT Network, members agree that if any member's patent assets fall into the hands of a PAE, the company provides a license to all other network members. LOT Network members safeguard each other against disruptive PAE litigation from those patents.
"We're pleased that Yokogawa recognizes the importance of having an IP strategy that includes membership in LOT Network," said Ken Seddon, LOT Network CEO. "Their membership reflects a growing sentiment that protecting innovation by preventing the financial drain of lengthy PAE litigation is a global priority."