Uncovering Cost Savings in Your Portfolio Through Advanced Patent Analytics
The beauty of patents is that they give patent owners an opportunity to prosper from their inventions, and reward them for their hard work and contributions to the world. Although patents fuel innovation and are often lucrative for patent holders, there are times when patents cost more to maintain than they are worth. If there is anything we have learned from the turbulent times of 2020, it is that cost savings in your portfolio can be necessary for survival. Maintaining a patent in only a few patent jurisdictions can be surprisingly expensive; and while patent annuity fees are rarely questioned or are often overlooked, it is important for companies to actively ensure their patent assets are worth more than they cost.
LexisNexis® PatentSight® and Annuity Fees
It is the nature of patents, regardless of where they were granted, to become more expensive to maintain as they move deeper into their patent terms. Because patent annuity fees increase as time goes on, a company’s cost of maintaining its patent portfolio could also increase year after year, even if they stop filing new patent applications altogether. For example, in the chart below, we see that it will cost Toyota Motors $30 million in 2020 just to maintain its current patents. By 2025, its annuity fees will increase to $70 million, despite the fact that its portfolio size will less than double. The PatentSight innovation analytics platform enables its users to analyze the annuity fees of a patent portfolio using global patent data, which sheds light on the costs they should expect to face in the future.
Pruning Portfolios With Patent Analytics
Understanding the expected costs of a patent portfolio is only part of the cost-saving process—it is just as important for companies to develop an understanding of the value of their patent portfolio. To assess the value of an entire patent portfolio, PatentSight users can make use of the scientifically backed Patent Asset Index™ patent metric; the greater a patent portfolio’s Patent Asset Index, the greater the portfolio’s economic value. Companies can use Patent Asset Index to assess their portfolio’s value against its costs so they can budget their resources more effectively.
The Patent Asset Index of a patent portfolio is based on the value of the patent rights of each patent contained in the portfolio. Referred to as a patent’s Competitive Impact™ in the PatentSight platform, PatentSight calculates each patent’s economic value based on both the size of the market where patent protection exists, and how significant or impactful a patent has been in terms of technological development. Using PatentSight to better understand the Competitive Impact of each patent in a patent portfolio, PatentSight users can identify the patents that are worth less than they cost to maintain, and save money by pruning those low-value patents from their patent portfolio.
The PatentSight innovation analytics platform helps create data-based projections of what the future might hold. The PatentSight advanced patent tools and metrics allow users to better understand their patent portfolios so they can make smarter business decisions. To learn more about how to use PatentSight to your benefit, be sure to check out our “Uncovering Cost Savings in Your Portfolio” webinar.
Would you like to get more insights into PatentSight Business Intelligence?
Please fill out the following form. We will get in touch with you to arrange an appointment for a webmeeting.
We would love to get to know you and show you some invaluable insights into the IP landscape:
• Let’s have a conversation about your current priorities in IP analytics
• Get an external view on your portfolio
• Learn how others see you and survey your market companions from a new perspective