Increasing Patent Portfolio Strength and Patent Income at Siemens

increasingpatentportfoliostrengthandpatentincomeatsiemens

Increasing patent portfolio strength and patent income at Siemens is a complex undertaking that requires a variety of strategies, tactics and technologies. While these methods may seem overwhelming, the truth is that they are relatively simple to implement and can result in a substantial increase in your portfolio strength and patent income.

Quantity-based approach

Whether you are evaluating a new company’s patent portfolio or managing an existing portfolio, quantifying the strength of a company’s patents is a critical factor in valuation. There are several indicators you can use to measure the strength of a company’s patents. The key is to use a reliable analysis. Using advanced tools to indicate the strength of a company’s patents can simplify the evaluation process.

The Siemens IP team has consistently increased the quality of its patent portfolio since 2005. This has resulted in a better return on investment. However, this has not prevented the margin erosion that is associated with product development and market competition.

As a global powerhouse in automation and electrification, Siemens needs a patent strategy that can help the company anticipate future technological trends. For this, it is important to understand the processes behind invention. In addition, it is important to ensure that the names of assignees and assignee companies are unambiguous.

In order to achieve a quantitatively accurate assessment of a company’s patents, it is important to use a tool that can unify the names of assignees and assignees. The most effective and reliable tools are those that have been validated by experienced intellectual property practitioners.

The PatentSight Patent Asset Index was one of the tools used by the IP team at Siemens. It uses global patent data to assess the strength of a company’s patent portfolio. It also checks the validity of a patent. The database tracks company name changes and the remaining lifetimes of a patent. This ensures that the analyses are focused on the most active patents.

The score also takes into account the number of forward citations a patent has received. If a patent receives many a citations, this indicates that it is likely to be a successful product. It is also possible to add other patent indicators to the scoring mechanism.

In addition, a patent strategy can help a company to anticipate market demand for a product. This can enable a company to develop the best products for the market. It can also help a company anticipate technological shifts.

New IP strategy

Historically, large technology companies have used patents to establish and protect their IP rights. But, in the digital age, this strategy has become less effective. Instead, they’re more often used to document a company’s contributions to the digital ecosystem.

However, a new IP strategy developed at Siemens enables the global powerhouse to take advantage of a growing IoT market and boost its patent portfolio strength and income. The company’s shift from a quantity-driven to a quality-driven IP strategy has resulted in better return on investment.

As a result, the Siemens IP department now supports the rest of the business with quality-based innovation insights. The IP team can recommend where to invest more in R&D. Using the Patent Asset Index, it can assess the strength of the company’s overall patent portfolio, track corporate structures, and check the validity of each individual patent. The team also offers analytics tools that enable businesses to identify patent gems.

When Beat Weibel joined Siemens as group senior vice president and chief IP counsel in 2013, he realized that the company had an urgent need to divert from its reliance on simply accumulating patents. His first step was to integrate the two strategies.

For Weibel, the value-driven IP strategy meant focusing on an idea that could have tangible business benefits. It could also mean taking an inventor-driven approach, but doing so in a more systematic way. By integrating IP activities into Siemens’ innovation process, the company is able to determine where to devote additional resources to developing the next big thing.

A second step was to select a metric to measure the quality of the patents in its portfolio. In order to do this, Weibel sent lawyers to talk to Siemens developers.

The new perspective led to a higher proportion of patents that had real business value. This is a key factor for success in a digital business ecosystem.

As the patent portfolio strengthens and becomes more valuable, it helps the company to realize a higher return on its investment. In addition, the company has started to present the Inventors of the Year award to researchers outside the company.

Loss of value from devaluation of foundational patents

Hundreds of millions of dollars worth of foundational patents are being traded off by smaller, more nimble companies. This in itself is no surprise, since large multinationals already have a leg up on the competition in a number of sectors. However, a look at the numbers tells a different story.

The most surprising statistic is that the average cost of a foundational patent has dropped by more than half. This translates to billions of dollars sloshing around the federal coffers. If this were a real-world scenario, the CPAs of the world would be writing off some of that good-for-the-bank wealth. The big question is, why? The answer is a little closer to home. Having been a CPA for nearly 20 years, I have seen firsthand the number of CPAs in my own backyard swell and shrink over time. This, coupled with the fact that the IRS is a taxing entity, has forced CPAs to take a hard look at the financial statements of the nation’s hottest companies.

The patent industry has been hit hard. The good news is that the large number of smaller companies have a vested interest in ensuring that their patent portfolios are well protected and a sound business plan in place. The bad news is that the patent system is already in disarray. This is a major bummer for inventors who have worked long and hard to perfect their products. Sadly, they are unable to share their hard-earned innovation with the rest of the world. The patent industry is not the only one hit by the new administration, but it is a major blemish on the aforementioned front. This is a shame because they are a significant contributor to the economy as a whole.

Methods for increasing portfolio strength and patent income

Previously, the IP team at Siemens was in a reactive mode, working with only limited understanding of the value of inventions. This meant that Siemens inventors would invent first, then call on IP colleagues to prepare patent applications. Moreover, companies would hold onto all of their patents for as long as they could.

Fortunately, the company has switched to a value-driven strategy. By focusing on the quality of their patent portfolios, Siemens has realized better returns on their investment. This strategy has helped the company to increase its IoT portfolio strength by 47.2 percent between 2016 and 2020.

Patents can underpin licensing revenue and direct sales. However, they can also be expensive to maintain. For this reason, the IP team at Siemens has changed the way they evaluate patents.

The new method of evaluating the portfolio of patents includes a number of indices. Each index contributes to the overall strength of the patents. For example, the Patent Asset Index takes into account the total amount of patent-protected inventions, the number of patents that remain valid and the total commercial impact of patents. This index is based on PatentSight’s proprietary global patent database. It measures the strength of the company’s technological position and corporate structures, and ensures that valid patents are maintained.

The patent quality evaluation method is applicable to large patent portfolios. The method is based on a number of indices that are arranged in a hierarchical structure. The complexity of the hierarchy depends on the level of objectivity and the accuracy of the PQ determination. Similarly, the value of each index is dependent on the value of the other indices.

The patent quality graph is shaped like a convex mountain surface. It has symmetric slopes and converges to a single point 22. The graph is wider at the base. It is also color coded according to the visible part of the light spectrum. The different values of the patent documents are represented by different colors. Using this method, the expert’s bias is eliminated.

The system for evaluating the patent portfolio also includes a visualization unit, which helps to visualize the results of the evaluation process. A web site allows access to the system and manages the activities of the experts.