A methodology for developing new technology ideas to avoid Patent infringement: F-term based patent analysis The International conference on ICEMM 2015 Kisik Song, Sungjoo Lee* Industrial Engineering, Ajou University, Republic of Korea 2015. 6. 23.

Contents Introduction Literature review Methodology Case study Conclusion - 1 -

Kisik Song, Sungjoo Lee* The International conference on ICEMM 2015 Introduction Research background The importance of technology opportunity analysis and new technology development has become more apparent due to the risks inherent in launching and growing new business(Lee, Kang and, Shin, 2015) Recognizing the needs, a lot of firms have increasingly been developing new technology opportunities from patent analysis(Park et al., 2013) In related studies, the IPC(International Patent Classification) system or keyword from text-mining application to patent documents was generally used to define vacant technologies Research purpose Unlike previous studies, this paper adopted F-term, which classifies patent documents according to the technical features of the inventions described in them F-term provides more detailed information about technologies compared to IPC while more systematic information compared to keywords Recognizing the potential of F-term, this paper aims to suggest a novel approach to developing new technology ideas to avoid patent infringement based on F-term Kisik Song, Sungjoo Lee* - 2 -

Kisik Song, Sungjoo Lee* The International conference on ICEMM 2015 Literature review(1/3) Existing studies for analyzing technology opportunity The direction of emerging technology development based on patent information or text-mining(Park et al., 2008; Yu & Lee, 2013) Deriving new technology opportunities based on patent-flow analysis(Lee, 2014; Yoon & Park, 2005; Kim & Song, 2007; Wang et al., 2014) Technology forecasting by using growth rate of accumulated patent which applied s-curve(Trappey et al., 2011) Limitation of existing studies First of all, since preexisting methodologies almost entirely focused on macro trends, research in micro analysis that could support enterprises in deriving technology opportunities were limited Secondly, a lot of research still depends on qualitative analysis by an expert group Thirdly, previous research mainly used the IPC system for analysis of technological feature or classification However, IPC is restriced to analyzing the convergence of products and various technologies for investigating new technology Kisik Song, Sungjoo Lee* - 3 -

Kisik Song, Sungjoo Lee* The International conference on ICEMM 2015 Literature review(2/3) Outline of F-term F-term is one of the patent classification system that classifies patent documents according to the technical features of the inventions described within them Technical features are analyzed from various perspectives such as ‘function,” “structure,” “material,” and so on This paper used industries for “theme group,” technologies for “theme code,” technology attributes(TA 𝑖) for “view code,” and TA 𝑖 (𝑗) for “number code” Kisik Song, Sungjoo Lee* - 4 -

Kisik Song, Sungjoo Lee* The International conference on ICEMM 2015 Literature review(3/3) Outline of F-term Both F-term and IPC are patent classifications for technical taxonomy While IPC searches using a single view, F-term can investigate in detail through multiple view Since F-term has 5 times more classifications than IPC, the effectiveness of the technical classification is relatively high Kisik Song, Sungjoo Lee* - 5 -

Methodology(1/8) Research process Selecting target technology The International conference on ICEMM 2015 Methodology(1/8) Research process Selecting target technology Selecting technology for reference Deriving new technology idea Evaluating the ideas Kisik Song, Sungjoo Lee* - 6 -

Deriving new technology ideas The International conference on ICEMM 2015 Methodology(2/8) Principle of methodology Target Technology Reference Technology Technology Attribute apply Technology Attribute Similar technologies Deriving new technology ideas Firstly, selects the target technology for a combination Secondly, Investigates reference technology that have high potential for combination Lastly, We compare the technologies and extract the technical features that are commonly used in other technologies and extract the technical features that are commonly used in other technologies but have not been used in the existing one Kisik Song, Sungjoo Lee* - 7 -

Kisik Song, Sungjoo Lee* The International conference on ICEMM 2015 Methodology(3/8) Step 1) Select the target technology for the combination The target technology for combination will refer to the F-term classification system F-term is collected from the Industrial Property Digital Library(IPDL) Then, user selects technologies for combining new technology according to consideration of recent issues Kisik Song, Sungjoo Lee* - 8 -

Technology classification table The International conference on ICEMM 2015 Methodology(4/8) Step 2) Selecting technology for reference Extracting similar technologies for combination Technology classification table T1 T2 … A1 A2 ︙ Keyword 1 Keyword 2 Keyword 3 ︙ Text mining We measure similarity among the technologies by searching for reference technologies that have a high possibility of combining with target technology Target technology Attribute 1 Attribute 2 Attribute 3 Reference technologies Cosine similarity cos ( 𝑑 𝑖 , 𝑑 𝑗 ) = 𝑘=1 𝑛 𝑊 𝑖𝑘 ∙ 𝑊 𝑗𝑘 𝑘=1 𝑛 𝑊 𝑖𝑘 2 ∙ 𝑘=1 𝑛 𝑊 𝑗𝑘 2 𝑊 𝑖 , 𝑊 𝑗 : Keyword vector in document i, j Cosine similarity Kisik Song, Sungjoo Lee* - 9 -

Kisik Song, Sungjoo Lee* The International conference on ICEMM 2015 Methodology(5/8) Step 2) Selecting technology for reference Final selecting reference technology for combination Option 1 Option 2 𝑦 𝑡 : Cumulative patent application at time T L: Maximum value of 𝑦 𝑡 a: Location of the curve b: Controls the shape of the curve 𝑦 𝑡 = 𝐿 1+𝑎 𝑒 −𝑏𝑡 Rank Reference technology Similarity value 1 Technology A 0.7 2 Technology B 0.6 3 Technology C 0.5 Technology life cycle: Introduction( 𝐿 𝑦 𝑡 <0.1), Early growth(0.1≤ 𝐿 𝑦 𝑡 <0.3), Growth(0.3≤ 𝐿 𝑦 𝑡 <0.5), Early mature(0.5≤ 𝐿 𝑦 𝑡 <0.75), Mature(0.75≤ 𝐿 𝑦 𝑡 <0.9), Saturation(0.9≤ 𝐿 𝑦 𝑡 )으로 구성됨(Mayer & Ausubel, 1999). Accumulated patent value Option 1 measures similarity among the technologies by searching for reference technologies that have a high possibility of combining with target technology Reference technology A Patent A Saturation Year Accumulated patent value Reference technology B Patent B Growth Year Accumulated patent value Reference technology C Mature Patent C Year Kisik Song, Sungjoo Lee* - 10 -

Kisik Song, Sungjoo Lee* The International conference on ICEMM 2015 Methodology(6/8) Step 3) Deriving new technology – Process of combining technologies based on TA 𝑖 level Target Technology Reference Technology Similar technology Technology A Technology B TA 𝑎1 TA 𝑎2 TA 𝑏1 TA 𝑏1 TA 𝑏2 TA 𝑏3 First of all, we derive new technology ideas by combining between TA 𝑖 in each technology in this step The main principle of this process is to create a new technology idea by combining TA 𝑖, which is utilized in Reference technology but not utilized in Target technology Kisik Song, Sungjoo Lee* - 11 -

Kisik Song, Sungjoo Lee* The International conference on ICEMM 2015 Methodology(7/8) Step 3) Deriving new technology – Process of combining technologies based on TA 𝑖 (𝑗) level Target Technology Reference Technology Similar technology Technology A Technology B TA a 1 = TA 𝑏1 TA a 1 TA b 1 TA 𝑎1 (1) TA 𝑏1 (1) TA 𝑏1 (1) TA 𝑏2 (2) Secondly, Combination based on the TA 𝑖 (𝑗) level is the combination of more detailed technical units than the TA 𝑖 level When both target technology and reference technology use TA 𝑖 but TA 𝑖 (𝑗) of TA 𝑖 is not being used in target technology, we can derive a new technology idea by combining TA 𝑖 (𝑗) Kisik Song, Sungjoo Lee* - 12 -

Methodology(8/8) Step 4) Evaluating the ideas Criteria Description The International conference on ICEMM 2015 Methodology(8/8) Step 4) Evaluating the ideas Criteria Description Modification Technology growth Whether the proposed technology has the potential to grow in the market 1 10 𝑝 𝑖+1 𝑝 𝑖   ( 𝑝 𝑖 : Accumulated patent that combined keyword in i year, i: 2004, 2005, … 2013) Technology applicability Whether the proposed technology is applicable to many products; the more technological applications, the higher the technological connection 1− 𝑗 𝑘 𝑝 𝑗 𝑡 2 ∗ 𝑛 𝑖 𝑛 Note: 𝑝 𝑗 𝑡 is the relative frequency rate of keywords at each theme group t, 𝑛 𝑖 = The number of theme code combined keyword 𝑛 = Total number of theme code Applicability is assessed by how many main keywords of an idea are distributed in other technologies Growth evaluating is performed by using the growth rate of patents containing keywords of the new technology idea in the patents’ titles Kisik Song, Sungjoo Lee* - 13 -

Kisik Song, Sungjoo Lee* The International conference on ICEMM 2015 Case study (1/6) Step 1) Data collection and target selection In all, a total of 49 classification documents(theme code) about automobile technology were obtained with the 2014 version of F-term In the long term, automobile technology is expected to have great economic significance In this case study, we selected 3D046(braking systems) for target technology Kisik Song, Sungjoo Lee* - 14 -

Cumulative number of patent life cycle forecasting The International conference on ICEMM 2015 Case study (2/6) Step 2) Selecting technology for reference Option 1 References Target 3D047 3D246 3D114 3D048 3D045 3D046 0.7217 0.7216 0.6123 0.5892 0.5773 Reference technologies Cumulative number of patent applications Range of decision Technology life cycle forecasting 3D047 695 98.85% Saturation 3D246 4,271 93.77% 3D114 1,079 96.16% 3D048 1,465 90.08% 3D045 270 96.42% Option 2(x) We investigated reference technologies of other 3D technologies similar to target technology 3D046(Adjustment of the braking force) for combination If users should select option 1, we have to select 3D047, which has a high similarity to 3D046 In option 2, we can’t select final reference technology because all of the reference technologies predicted saturation Kisik Song, Sungjoo Lee* - 15 -

Kisik Song, Sungjoo Lee* The International conference on ICEMM 2015 Case study (3/6) Step 3) Deriving new technology ideas – based on TA 𝑖 level After step 2), we derived 3D047 as the TCU using option 1 We extracted the TA 𝑖 of 3D047 and combined target technology; 3D046 with technology for combination unit; and the TA 𝑖 of 3D047 The derived technology idea, as combined between technologies from the same industry, can be described by braking adjustment of force, which has a sealing function such as a diaphragm Kisik Song, Sungjoo Lee* - 16 -

Kisik Song, Sungjoo Lee* The International conference on ICEMM 2015 Case study (4/6) Step 3) Deriving new technology ideas – based on TA 𝑖 (𝑗) level We extracted TA 𝑖 (𝑗) in TA 𝑖, such as “transmission” and “control,” which are both commonly used in 3D046 and 3D047, and combined them Kisik Song, Sungjoo Lee* - 17 -

Kisik Song, Sungjoo Lee* The International conference on ICEMM 2015 Case study (5/6) Step 3) Deriving new technology ideas – Description of new ideas New technology ideas Description Single master-cylinder assemblies of hydraulic transmission + adjustment of the braking force Preexisting technology Tandem master-cylinder assemblies of hydraulic transmission Control with constant transmission of force and pressure It can be the braking force whose pressure of delivery is constant by the force distribution through the transfer control unit Control with variable transmission of force and pressure It can be the braking force whose pressure of delivery is variable by the force distribution through the transfer control unit Sealing + Adjustment of braking force braking adjustment of force, which has a sealing function such as a diaphragm Kisik Song, Sungjoo Lee* - 18 -

Kisik Song, Sungjoo Lee* The International conference on ICEMM 2015 Case study (6/6) Step 4) Evaluating the ideas For the growth assessment, we investigated patent applications from 2004 to 2013 Technology ideas were categorized into four properties according to the value of each indicator Kisik Song, Sungjoo Lee* - 19 -

Kisik Song, Sungjoo Lee* The International conference on ICEMM 2015 Conclusion Contribution Unlike existing studies, this study investigated technical units in detail and combined them using the F-term classification system Combining technologies within the same industry can be useful for ideas to avoid patent infringement from competitors Since the rate of utilization is also increasing every year, F-term-based methodologies are expected to increase gradually Discussion it is hard to reflect all of the technical features through the keyword level the feasibility of verifying a new technology idea was not sufficient because we considered just two indicators for assessment Further research will consider expanded keywords such as subject, verb, and adjective so that it is possible to extract technical attributes more accurately We will need to build a model considering various indicators for feasibility evaluation Kisik Song, Sungjoo Lee* - 20 -

Thank you Q&A.