Google to Startups: (Mostly) Free Patents Here!

Trolls beware, Google's on to something with its latest IP experiment

2 min read

Google to Startups: (Mostly) Free Patents Here!
Photo-illustration: Getty Images

Itā€™s hard to keep up with Googleā€™s adventures in patents these days. No sooner had its Patent Purchase PromotionĀ endedā€”July 22 was the date by which Google mailed out final purchase contractsā€”than it announced another experiment, the Patent Starter Program, the very next day. The starter program could be over even more quicklyĀ than the purchase promotion, which gave interested parties only three weeks to decide whether to participate (seeĀ ā€œGoogleā€™s Patent Portal is Closing Fastā€).

Rather than offering to buy patents, however, the new program gives them away.

Itā€™s meant to targetĀ startups and developers that may be defenseless when it comes to patent protection. From the program descriptionĀ [pdf]:

All too often these days,Ā the first time a startup has to deal with a patent issue is when a patent troll attacks them. Or when a prospective investor may ask them how they are protecting their ideas.

At no cost, participants can choose two patents from a group of three to five that Google identifies as relevant to their businesses. Startups can also search Googleā€™s portfolio of other patents the company has purchasedĀ (although not patents granted to Google itself) for assets the company might be willing to sell.

The catch is that participants must join the License on Transfer (LOT) network, a royalty-free cross-licensing arrangement launched by Google and several other companies in July 2014 to combat trolls. Under LOT, each company grants a license to other members, but that license only goes intoĀ effectĀ if the patents in question are transferred to a company outside the LOT. That way, if a troll gets hold of the IP, it finds that thereā€™s nobody (in the network) to sue.Ā Google says that LOT network membership fees for the startups in the Patent Starter ProgramĀ will be waived for two years.

One other catch: Google will accept only the first 50 applicants that meet its revenue criteriaā€”2014 revenue of $500,000 to $20 million. Asked if that fact would create a mad rush by applicants that donā€™t want to miss a chance at Googleā€™s largesse, the companyā€™s senior product licensing manager, Kurt Brasch, said that such a resultĀ wasnā€™t the intent. Rather, the company wanted to limit the number so it could properly gauge interest in the idea. ā€œWeā€™ll evaluate it afterward, just like our other experiments,ā€ he said.

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