Find patents of Value… Faster!
Presenter
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Peter Hanschke
Director, Product Management
Housekeeping
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• Everyone is on mute …please submit questions through the chat
window
• Question(s) will be answered during Q&A section
…or during the presentation if there is time
• Slide deck and recording will be available next week
Chipworks
Patent and technology partner to the world’s
most successful high tech companies
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Founded in 1992 to provide technical analysis capabilities to companies
seeking to grow the potential of their IP and understand their competitors
Headquartered in Ottawa, Canada with over 112 employees – offices in Canada, USA, Europe, Japan, Korea
and Taiwan
Provide solutions to over 200 global technology, semiconductor and
electronics companies
Five in-house laboratories with advanced tools and equipment for
in-depth, world-class analysis
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Foundation of our products and services are built on
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IP professionals are being asked tough questions
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How can I strengthen my negotiating position?
Which competitors should I be concerned about?
What are my core and non-core patents?
Can we strengthen our defensive positions?
What are my most valuable patents?
How can I make my patents as strong as possible?
Helping you answer these and other
questions with confidence is what
Chipworks is all about.
Agenda
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What are valuable patents?
Tools and processes
Using patent mining tools
Demo
Q&A
What are valuable patents?
Value – A Technology perspective
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Assuming the patented invention is novel and not obvious, and
the patent is “unencumbered” from a licensing stance
Then the key factors that
determine a patent’s value are
• Is it used?
• Can you prove it?
• Can you make a case for a
reasonable royalty?
Matching your patents to other’s products –
consistently increases the patent value
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Patents Products Matching
to
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Matching patents to products
Combining our industry knowledge and market intelligence through
product teardowns to map key patents to large revenue segments
Products
Smartphones Tablets Desktops
$47 B $15.7 B $8.4 B
Pa
ten
ts Patent # Priority Date Patent Type
US 7,000,001 3-Nov-93 Systems X X
US 7,000,003 13-Oct-92 Process X X
US 7,000,004 13-Jun-96 Circuit X
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Desktops
$8.4 B
Tablets
$15.7 B
Smartphones
$47 B
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Identify patents higher up the supply chain
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Inc
rea
sin
g v
alu
e
Cloud
Brand / Consumer
Smartphone, tablets and E-readers
OEM / Assembly
Hon Hai Precision, Pegatron, Flextronics
Component / Module maker
Touchscreens, LED screens, Cameras
Packaging assembly house
Amkor PoP is in most phones and tablets
Semiconductor company
Synaptics, Qualcomm
Foundry
TSMC, GloFo and Samsung
Application Software
Operating Systems
Software
iOS, Android and
Windows
Tools and processes
Patents are becoming a ‘big data’ problem
• Patent volumes increasing rapidly
• Estimated 3-5% of granted patent assets generate value for their owners
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,92971
615,243
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013
USPTO Patent Publications
Patent Applications Patent Grants Patent Application Trend
Finding the right patents, faster
through automation
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• Patent mining
tools allow you to
filter, prioritize or
analyze groups of
patents
Goal-driven
custom mining
Technology
classification & clustering
Patent
similarity search
Semantic
technology search
Patent analytics
& benchmarking
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Finding the right patents, faster
through automation
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• Tools operate on
patent data
Patent full text data - titles,
abstracts,
claims,
disclosure
Patent
bibliography -
classification
codes, dates,
assignment Goal-driven
custom mining
Technology
classification & clustering
Patent
similarity search
Semantic
technology search
Patent analytics
& benchmarking
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Staying on top of ‘big data’ with patent tools
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• New ‘patent tools’ appear weekly with features that fall into categories
Patent database – raw patent data
Patent search – search of raw data
Patent analytics – trend analysis, clustering, classification, algorithms, etc.
Patent metrics – quantify patent value and/or quality
• IP teams use these features to analyze ‘big data’
• They need easy-to-use, high-performance software analytics & metrics
• What can you really trust tools to do?
Each has pros and cons (you have to know them)
The use of multiple techniques reduces overall error
Validation is a big part of tool selection, so choose carefully – we do!
Using patent mining tools
Some typical IP monetization goals
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Prepare for an upcoming cross-licensing negotiation
“I need 20 claim charts for an upcoming negotiation”
Identify patents for sale and achieving the best sale price
“I would like to put a group of patents together for sale – say 10-20
patents in a particular technology area – with 1-2 patents that have
a claim chart”
Anticipate and prepare for your opposition’s response
“If we started a fight with them, what will be their response?
Will their patents read on your product?”
Identify patents to acquire
“We need patents that read on company A, who might own patents
that we could buy?”
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Prepare for upcoming cross-licensing negotiation
or
Identify patents for sale
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• Ultimate goal in both these cases is to create claim charts to
support your case – for licensing or sale
Patent portfolio evaluation with mining
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Preliminary
evaluation of claims
to prioritize patents
based on whether
we believe the
invention is
• In use today
• We can prove it
Evaluate
Inspection by
engineers
• Select those that
are applicable to
targets
• Remove false
positives selected
by the automation
Screen
• Use automation to
compare a group of
patents and target
company technology
and products
• Prioritizes which
patents should be
read first
Mine
Target
Criteria / Key Words
Mining example: Larger portfolio mining
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Goal: Find and document 10 hits against GPUs
Steps:
• Identify GPU standards, protocols, architectures, technologies
• Build filter model(s) in automation-assisted tool(s)
• Filter portfolio using model and tool(s)
• Iteratively refine model(s) until precision is acceptable
IPC Likeness
Prioritize by “likeness to GPU” patents
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• Chipworks’ IPC likeness tool gauges the similarity of a patent to
patent reference set using IPCs
IPCs
Patent portfolio
A GPU
company’s
patents
Patents asserted
against GPU
company
Sorted
portfolio
De-risk
Anticipate your opponent’s response
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• Based on the premise that most companies tend to write
patents around the technology they produce –
• Looking at their patent portfolios is an inexpensive way of
understanding a potential opponent’s response
Demo – KMX Text Analytics Tool
Chipworks Patent Analytics
• Focused exclusively on the semiconductor and electronics markets
• Chipworks Patent Analytics solution includes:
License to KMX text analytics tool
Chipworks services
• Chipworks' uses KMX to achieve IP goals every day
• Chipworks Service includes:
KMX training tailored to your IP group
Reusable classifiers derived from our patent back-file
A patent data set to bootstrap your analyses
On-going support and maintenance
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Chipworks
Patent
Analytics
KMX Text
Analytics
Tool
Chipworks
Services
Semiconductor Patents (USPTO)
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• Over 20,000 active
patents and
applications
• Each patent is
represented by a dot
on the landscape
• Topographic peaks
are distinct technology
concepts – and
annotated with
representative words
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Overlay two
different
patent
portfolios
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Avago
and LSI
Patent
Portfolios
Twitter 946 US patents as of Feb 2014 – after IBM
patent acquisition
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Close
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• Identifying patents of value is an important
starting point for any patent monetization
strategy
• Key factors determining patent value
Use of invention
Whether you can prove it
Size of the market (and where in the supply
chain) the invention is used
• Patent Analytic approaches help you sort
through patent portfolios to identify patents
of value -
• and identify which ones to read first!
Q&A
Thank You
For over two decades, intellectual property teams and outside legal counsel have trusted Chipworks’ Patent Intelligence Services to help them identify
and fully leverage their best patents, protect their competitive position, prepare for litigation and develop successful IP strategies.
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