The LOT program launched Wednesday. The LOT Network has been dubbed a Justice League for patents. Mike Masnick at Techdirt noted that “this kind of program really only works if lots of companies join, but they’ve made it incredibly easy to join.”
If patents of a LOT Network participant are transferred through a triggering event (such as a transfer to an entity other than another LOT Network participant), every active LOT Network participant as of the date of transfer has a license to the transferred patents. This arrangement makes patents less attractive to patent trolls as acquisition targets. It also helps companies avoid a bad fate for their patents, if the company is later dismantled or its assets sold off.
You can download a copy of the LOT agreement here.