JERSEY CITY, N.J., March 19, 2019 — Verisk (Nasdaq:VRSK), a leading data analytics provider, announced this week that it has joined the LOT Network, a nonprofit group dedicated to fighting patent abuse. The LOT Network has about 300 members, including Microsoft, Google, Amazon, GM, Target, and Uber.
Verisk supports protecting groundbreaking and innovative intellectual property, which is essential for every industry and company. However, we are deeply concerned about patent litigation abuse for technology that is far from new or innovative.
The LOT Network was formed in response to abuse of the United States patent system. Patent trolls—called patent assertion entities or PAEs by LOT—buy patents or apply for patents for technology and processes that are often long-standing and commonly used and then aggressively litigate to generate revenue. LOT calculates patent trolls are responsible for 84 percent of high-tech patent litigation in the United States at a cost of around $80 billion per year.
Although recent U.S. Supreme Court decisions have provided defenses that help weed out the worst offenders, Verisk is concerned about the rise of these methods as a business tactic in companies seeking to add a new source of revenue to enhance their bottom line.
Verisk has observed that companies are looking for a competitive advantage by obtaining patents for a small part of a critical workflow. Examples of this practice include incorporating into a patent math invented by Euclid around 300 B.C. simply because the process is now part of a computing system. Another example is using elements of architectural drawings, which have been widely used since the ninth century, in a patent for similar, clearly meritless reasons.
LOT calculates that more than 10,000 companies in the United States have been sued at least once by a patent troll. LOT’s mission is to protect intellectual property while at the same time promoting innovation. For example, to help fuel and protect innovation, membership is free to eligible start-ups. To learn more about the LOT Network, visit Lotnet.com.
Verisk (Nasdaq:VRSK) provides predictive analytics and decision-support solutions to customers in the insurance, energy and specialized markets, and financial services industries. More than 70 percent of the FORTUNE 100 relies on the company’s advanced technologies to manage risks, make better decisions and improve operating efficiency. The company’s analytic solutions address insurance underwriting and claims, fraud, regulatory compliance, natural resources, catastrophes, economic forecasting, geopolitical risks, as well as environmental, social, and governance (ESG) matters. Celebrating its 50th anniversary, the company continues to make the world better, safer and stronger, and fosters an inclusive and diverse culture where all team members feel they belong. With more than 100 offices in nearly 35 countries, Verisk consistently earns certification by Great Place to Work. For more: Verisk.com, LinkedIn, Twitter, Facebook, and YouTube.
Head of Investor Relations
Edelman (for Verisk)