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Use of Network Patent Analysis (NPA) for advanced analysis of patent data Creating business advantage from patent insight Mike Lloyd, Doris Spielthenner,

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Presentation on theme: "Use of Network Patent Analysis (NPA) for advanced analysis of patent data Creating business advantage from patent insight Mike Lloyd, Doris Spielthenner,"— Presentation transcript:

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2 Use of Network Patent Analysis (NPA) for advanced analysis of patent data Creating business advantage from patent insight Mike Lloyd, Doris Spielthenner, and George Mokdsi 5 th June 2012

3 1. Introduction to NPA

4 Patents are becoming big business…

5 But which patents? It is self-evident that patents have a range of values..

6 NPA is based on patent citations Patent citations

7 Each patent citation provides two powerful and valuable insights 1)Both patent applicants thought that the subject matter they filed their patents in was important and valuable enough to invest in a patent filing (whether the later applicant knew about the earlier patent or not) 2)Either the examiner or applicant for the later patent thought that the earlier patent was similar enough to disclose a similar feature. In other words, human intelligence has been used to make connections between patents.

8 Most patents have both forward and backward citations Subject patent Reverse or backward citations Earlier patents considered to be similar Forward citations Later patents considered to be similar

9 Citations in turn lead to other citations.. US US US US And 79 other patents.. US US US US US US US , 1994 US xxxx 199x US US Other citations US US Other citations

10 But the sheer quantity of citation data can quickly overwhelm ….

11 NPA uses algorithms to identify the most connected patents, and then cluster and rank patents within these networks: Image taken from a study of 9,000 smartphone patents Cluster of related patents

12 And by doing so, summarising and learning from the collective wisdom* encapsulated in the whole of the citation data in the area you are looking at * See Surowiecki, James: The Wisdom of Crowds: Why the Many Are Smarter Than the Few and How Collective Wisdom Shapes Business, Economies, Societies and Nations, 2004.

13 Each cluster of patent filings shows an area of high popularity Blue – client Red – competitor Bigger dot = more influential patent/inventor Thicker line = stronger relationship Adjacent patents = more similar patents Results are taken from an NPA analysis of 250,000 engineering patents

14 Each citation has a direction, which can provide information about technology development, or knowledge flow between competitors

15 Does NPA work? NPA rankings gave better predictions of Alzheimers drug trial patents than other rankings based on any of: - Forward, backward or total citation count - Number of family members Drug Patent protecting drug NPA ranking Count Ranking based on number of (48,000 patents) Forward citations Forward citations per year Backward citations Total citations INPADOC family members Forward citations Forward citations per year Backward citations Total citations INPADOC family members Bapineuzumab (Phase III Alzheimers drug) US ~ Solanezumab (Phase III Alzheimers drug) US ~ ~2750~3170~4400 Phase II trial Alzheimer's drug US7xxxxxx ~around 200th 1800 ~30~37,000~21,400~4750~9830~12,000

16 Weighted forward citation arrows have correlated to successful litigation Results are taken from an NPA analysis of 72,000 hybrid car patents

17 2. NPA in practice

18 Patent portfolio strength can be quantified, on a cluster by cluster basis

19 Up and coming patents can determined soon after filing, allowing analytical prediction of potential technology trends Filing year Leading smartphone of that year, (CNET, other sources) Leading NPA patents in smartphone study filed in that year US , Proximity detector in handheld device, Apple, NPA ranking = 2 US , Capacitive sensing arrangement, Apple, NPA ranking = 4th equal, US , Ellipse fitting for multi-touch surfaces, Apple, NPA ranking = 9 US , Touch screen device, method, and graphical user interface for determining commands by applying heuristics, Apple, NPA ranking = 146 US , Contact Tracking and Identification Module for Touch Sensing, Apple, NPA ranking = 424 USD Mobile Phone, Samsung, NPA ranking = 624

20 Patent thickets can be quantified

21 Relative technology turnover can be quantified

22 NPA in software form Client studies currently undertaken using consulting model AmberScope is now in beta testing –Will provide interactive online view of patent landscape around a nominated patent (houses in your street) –Ask me during the seminar for a demonstration AmberMap is being developed –Will provide an interactive online view of the patent landscape in a technology (houses and suburbs in your city) –Similar to what has been presented today, but with new capabilities Further products in pipeline See for more information and updateswww.ambercite.com

23 Thank you for your time… any questions?

24 AmberScope (currently proof of concept)

25 Does NPA work? (1) Top ranked patent in 2011 NPA smartphone study independently favoured by leading smartphone patent wars commentator Florian Mueller, 14 January 2012, fosspatents.blogspot.com : …but it isn't nearly as essential to Apple's litigation strategy as..: U.S. Patent No. 7,663,607 on a "multipoint touchscreen". The '607 patent is the broadest touchscreen-related hardware patent Apple has, and if the courts interpreted it as broadly as Apple would like them to,..would be extremely hard to work around.

26 3. Using NPA for advanced analysis of patent data

27 NPA is a unique means of clustering patents… Much more precise and reliable than IPC codes Avoids issues due to inconsistent choice of keywords, or keywords covering broad technical concepts Groups inventions together, not just technologies

28 NPA is a unique means of ranking patents Uses much more data than a simple forward citation count, in particular focusing on the broader picture Provides an indication of underlying patent quality that is more based on peer review than self-assessment (such as litigation measures or the size of the family) Compares patents against their closest competitors, not a broad field

29 Contents 1.Why NPA? An introduction to Network Patent Analysis (NPA) 2.How NPA differs from other analysis techniques 3.Using NPA for advanced analysis of patent data 4.Summary and conclusions

30 Or even just to provide a unique perspective on individual patents

31 NPA data can provide a unique perspective on the likelihood of successful patent assertion Lines showing citation linkages between cluster of Apple patents and asserted Motorola patent Cluster of Apple touch-screen smartphone patents Too far? Motorola touchscreen patent US 6,246,862, asserted against Apple


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