ITRI join hands with industry associations and tech giants to organize LOT Industry Alliance for combating patent trolls

　In recent years, industries around the world have been facing a surge in litigation risks posed by non-practicing entities (hereinafter “NPEs”), commonly referred to as “patent trolls”.  According to the Intellectual Property Innovation Corporation’s (IPIC) research and statistics, as many as 70% of overseas patent infringement lawsuits involving Taiwanese enterprises between 2022 and 2024 were filed by NPEs.  To assist industries’ defense against such threats, the Industrial Technology Research Institute (ITRI) announced on June 24, 2025 that it teams up with the Chinese National Federation of Industries, the Taiwan Electrical and Electronic Manufacturers’ Association, and the IPIC to officially organize the “LOT (License on Transfer) Industry Alliance”.  Nearly 20 leading companies and tech giants from the semiconductor, information and communications technology, and PCB sectors, including TSMC, ASE, Powertech Technology, SPIL, Vanguard International Semiconductor, Gigabyte, Arcadyan, MSI, AEMC, Unimicron were invited to join the launch event to show their support.  It is expected that the first wave of participation will pool together more than 150,000 valid patents that enable Taiwanese enterprises and research institutes to build a cross-industry “intellectual property protection network”.  

　To effectively defend NPEs, the LOT alliance model has been adopted by major technology companies around the world, such as, Google, Dropbox, Canon, SAP, and Red Hat.  The Department of Industrial Technology, MOEA has been supporting ITRI’s R&D and patent deployment through dedicated technology projects and has been actively reinforcing Taiwan IP protection.  Now ITRI has worked with industry partners to form the LOT Industry Alliance to create a comprehensive patent defense mechanism and build up a joint IP protection network for Taiwan, address NPE risks and enhances global competitiveness and resilience, and also demonstrate the government’s achievements of IP value creation and advanced technologies protection.

　　The LOT Industry Alliance operates under three core principles:   
1.    The Alliance does not interfere with the commercial competition among member companies; 
2.    The Alliance activates licensing only when a patent is transferred to NPEs and does not undermine the value of independent patent utilization; 
3.    The Alliance’s operation does not involve or require disclosure of technical details or trade secrets.  
With the Alliance’s operation, member companies’ scattered patent portfolios will be consolidated and elevated into an industry-wide defense system.  The Alliance will collaborate and build ties with similar international organizations and leading corporations to forge more comprehensive protection for Taiwanese enterprises while creating opportunities for diverse patent utilization.  (Released 2025.06.24)  
 /CCS