Lockton – the world’s largest independent insurance brokerage – and Open Invention Network (OIN) have agreed to partner to reduce the intellectual property (IP) risks facing companies developing and using Open Source technologies.
Since 20005, OIN has maintained the world’s largest and oldest patent cross-license while acting as a strategic guardian against patent assertion entities (PAEs) and corporate entities threatening Open Source. OIN’s cross-license has been used to successfully defend against PAE and corporate threats; in addition, OIN has actively supported the defense of Open Source technologies from patent risk with prior art sourcing and patent invalidity analyses.
Lockton’s technology clients are often concerned about Open Source license compliance and the risk of patent infringement allegations including those made by PAEs; the former can be within their control with good IP hygiene and risk management, while the latter may be challenging to manage. Such claims can be disruptive to everyday business operations, result in exposures in indemnity obligations, and perhaps impact investor confidence or even a business valuation.
It is in this context that Lockton and OIN’s collaboration can make a positive impact on clients and members developing and using Open Source technologies. For instance, Lockton conducts full IP risk reviews for its clients and if Open Source development and usage is detected, they will advise on the positive benefits of OIN membership. As OIN membership can have a material impact on the risk of successful patent infringement allegations, Lockton has secured preferential IP insurance terms which can include broader coverage and reduced insurance premiums where OIN membership is taken up.
Lewis Parle, Head of IP Risks at Lockton said:
“Our goal is to help our clients reduce IP risk and remove the barriers to investing in innovation. Many of our clients that develop and exploit open-source technologies are not patentees of software related/computer implemented inventions and can face vulnerabilities from patent holders that do not respect the open-source philosophy and model. For many of our clients, it is therefore a no-brainer that membership to OIN is of significant benefit. Not only does it demonstrate a focus on IP risk management, but it can also positively impact their ability to obtain IP insurance products, which can sometimes be mandated by clients and investors.”