1. Rohit Singh Gole
Clarivate Analytics
Patent Evaluation

2. Patent Evaluation

3. Introduction
Explicit monetary valuation of patents is not straightforward, nor likely absolute
However, patents must be viewed through a commercial lens
How do we evaluate patents based on their commercial impact?

4. Patent Strategy for Maximizing Business Value
Aligning commercial strategy with IP protection
IP and business sense
IP is useless if it does not support a viable business strategy
Many assume patent are necessary step for business
Could be waste of resources, money and time
Many assume that patent not necessary to create business value
Often wrong and lose exclusivity in successful business model

5. What is Patent Evaluation?
An estimation of the value of an IP asset or a set of IP assets
Many valuation techniques, ranging from the simple to the extremely complex
But, none of them are full-proof

6. Why Do You Need Evaluate IP?
Negotiations to sell/license IP rights
Merger, acquisition, joint venture or bankruptcy
To support decision-making in patent disputes
Fund raising/loans/venture capital
For accounting purposes

7. Patent Evaluation Based on Quantitative Analysis

8. IP Analysis Techniques Traditionally
Typical patent analysis largely driven by measurement of patent (or patent family) volumes, or changes in volumes

9. Not all Patents are Created Equal
Same applicant, same year, different results
Which is more valuable, which is more important?
Individually, provides information on strategy of applicant, notable pieces of IP requiring more intense review
Aggregating the information, the totality of outcomes becomes quite powerful.

10. Increasing Usage of Derived Metrics
Filing breadth analysis of an individual patent correlates to the level of investment the applicant has made
Therefore, follows that broadly filed patents are of higher strategic relevance to the applicant
Conversely, patents protected lightly in terms of geography represent lighter levels of investment and are more speculative

11. Quantitative Analysis – Potential Use Cases
Competitive Intelligence
Understand the activity and decision making by your competitors
Technical Intelligence
Discover emergent trends not just via volume changes, but volume and impact/quality/commercial proxies
Informing strategic direction/evaluating
Compare your IP strategy to a group of selected competitors/ benchmark entities

12. Case Study 1 – Competitive Intelligence
Review of filing breadth in aggregate across a portfolio, broken down by product or technology, uncovers the outcomes of individual patent family filing decisions
Outcomes may be unknown even to the applicant – useful for portfolio auditing on its own
Allows direct mapping of IP strategy to the wider business
Provides insight on IP/R&D strategy of competitors or the market as a whole

13. Case Study 2 – Technical Intelligence
Patent strength trends are applicable not just for competitive intelligence, but also technical insight
Small but important technology movements can be difficult to spot when measuring volume alone
Incorporating quantitative strength metrics into a technical analysis highlights where multiple players are moving towards the same goal
Emerging fields of interest

14. Case Study 3 – Benchmarking Outcomes
Assess quantitative strength in depth of your historical patent portfolio versus your competitors (or a selected group of entities with desirable IP performance)
Is your historical way of protecting patented innovation working for you in the market?
Does your IP strategy align to your market position?

15. Aggregated Quantitative Metrics

16. Patent Evaluation Based On Qualitative, Subjective Analysis

17. Qualitative Measurements
Less statistical and more subjective, but can include elements such as:
There is evidence that quantitative and qualitative measures strongly correlate

18. Going Much Further...
For individual patent cases, the level of research involved can ramp-up considerably, and encompass measurements such as:
Technical Attributes:
Impact of the invention (major breakthrough, major improvement, minor improvement)
Impact on end users (visible, invisible)
Implementation (overlapping products, ease of finding evidence
Financial Attributes:
Size of the impacted market
Evaluation of direct and indirect impacts: royalties, monopolies, stock price, brand, PR
Legal Attributes:
Patent validity
Regulatory environment per country

19. Implementing Patent Evaluation Techniques

20. How Do You Do It?

21. Why Do It?

22. In Summary Patent evaluation methods are evolving
Quantitative techniques probably more advanced at this point
Modern IP analytics output strongly tied to commercial insights based on patent data
Requires commercial proxies and evaluation of patent on commercial terms
More work needs to be done on regression testing of these types of metrics
Difficulty of finding a control

23. THANK YOU