Patent Analytics

For Patent Professionals and Portfolio Managers

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Free Claim Analyzer

What We Offer

Patent Services

Patent Ratings

A quantitative approach that thoroughly analyzes each claim and rates a patent using a scale from A to D. A-ratings represent patents with the highest economic value, D-ratings represent patents unlikely to have economic value.

Portfolio Analysis

An assessment of a portfolio's value including patent ratings, analytics and technology areas with the highest concentration of valuable patents.

Portfolio Valuation

Valuation is essential for any business, particularly for mid-to-large sized companies that invest hundreds of thousands of dollars on their portfolios.

Claim Analyzer

Automatically identifies and extracts each claim element. Users easily identify the best claim and the most important claim elements.

ANALYZE YOUR CLAIM NOW

Finding Valuable Patents

Sounds simple but hard to do. When portfolios grow to hundreds or thousands of patents the task becomes daunting. Owners and investors often simply consider the size of the portfolio as an indicator of value — a flawed approach. Rather the number of valuable patents within the portfolio determines its value. The common practice is to hire specialists to glean information about the portfolio — an arduous effort requiring significant time and is error prone.

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The Value of a Patent

Patent savvy companies recognize the opportunity to exploit the economic power conveyed by the ownership of patents - through licensing, litigation, divestiture and acquisition. Company management, stakeholders and investors are taking note - they realize that it is vital for to understand the value of the patents it owns and the impact on the company’s net worth. Surprisingly, the practice of valuing patents is often not on the financial sector’s radar let alone being carried out with competence!

There is also an underlying assumption that best efforts are being made to leverage a patented invention and that the economic potential is being exploited. The assumption is not always true, more often companies do not fully exploit the full economic potential of the patents they own. Hence there is a need in determining the economic opportunity represented by potentially underutilized patents.

Patents provide an opportunity to acquire a monopoly of profits generated from innovation. They serve as powerful incentives for companies, research organizations as well as individual inventors to invest resources and patent their discoveries. A patent is a right granted by the government to a person or legal entity such as a corporation. The patent provides the patent owner the "right to exclude" others from making, using or selling the invention/s claimed in the patent for 20 years. As the sole source of the patented invention, owners are granted a time-limited right to exclude competitors from the marketplace. Further, the patented right can be sold for a lump sum or it can be licensed in return for royalty payments.

A patent portfolio bears similarities to a financial fund. A financial fund own assets such as publicly traded stocks:

  • Each stock is a unique entity, it has a defined value and the value fluctuates accordingly to market conditions
  • Likewise each patent is a unique asset, it has an inherent value that changes according to market and technology trends, patent law and its term
  • The value of any given portfolio of patents cannot be measured by the quantity of patents alone, since some patents are worth more, others less and some may have no value at all
  • Unfortunately there is no defined value for patents — each patent is by definition unique and must be valued according to its merits

Valuable patents by definition are patents that provide substantial economic benefit to their owners. Patent value is driven by different criteria: Is the patented technology used in products, is there significant revenue attached to those products, and can the use of the patented technology be detected and proved? The corollary question is equally important for inventors; how can I ensure my patent applications are more valuable? Existing patent tools provide quality and strength metrics that help to some extent. However, missing are accurate analytics that provide a thorough valuation determination.

Patent Value vs. Patent Quality

Patent value and patent quality are used interchangeably and are often confused and misunderstood, and it is important to understand the distinction between the two.

  1. Patent quality is driven by legal criteria. Skilled prosecution teams are used to determine patent quality, essentially to determine whether a patent will withstand the scrutiny of opposing lawyers or interpretation by a Patent Trial and Appeal Board (PTAB) or district court judge. Simply stated — quality is no guarantee for value.
  2. A patent with valid yet extraordinarily narrow claims may be considered a "quality patent;" however, it may have little or no commercial use. Further, the issuance of a patent doesn’t guarantee that the patented invention has commercial value or substantive importance. This is often overlooked where granted patents are universally considered valuable.

The Claim Analyzer

A patent draws its value from a section referred to as the claims. Invariably the claims are the most important part of a patent and their analysis is an absolute requirement for determining value, they define the literal boundary of the patent owner's right to exclude.

  • The task for determining value necessarily starts with analysis of the patent claims
  • The claim analysis can be arduous for the lay person and requires an experienced skill set
  • The effort is time consuming and prone to human error; a single claim element can severely limit the value of a patent
  • Simple mistakes can costs hundreds of thousands of dollars in wasted effort and legal costs
  • The Claim Analyzer offers a solution not available from established tools providers
  • The Analyzer automatically identifies the important claim elements and assists users in understanding the inventive concept
  • Claim elements that can be easily applied in consideration of potentially infringing products

Patent Ratings

The Pelent Patent Rating system is a quantitative system that measures the extent a patent is used in products, the revenue attributed to those products, and can the patented technology be detected. The system analyzes and rates each patent using a scale from A through D. A-rated patents represent patents with the highest economic value, B-rated patents have medium value, C-rated patents have low value and D-rated patents are unlikely to have value.

Portfolio Analysis

Patent ratings provide critical insight for a given portfolio. Results are available in a raw data format or compiled into Portfolio Analysis Report. The raw data format is useful for patent specialist for specific requirements. The Portfolio Analysis is suited for financial analysts, portfolio managers and company stakeholders. The report provides a snapshot of a portfolio's status and includes:

  • Patent Ratings
  • Analytics
  • Technology areas with the highest concentration of valuable patents

Patent Valuation

Patent ratings are a prerequisite for valuation. The market approach is the most direct method for portfolio valuations. The approach relies in part on the efficiency of the market to properly value the patents. Market pricing is derived from recently brokered patents because they represent the majority of the public market for patents. The current market price combined with Patent Ratings provides a Fair Market Value Equivalent for a portfolio. The valuation should be recompiled on a regular basis to monitor change in value over time. The change in value can then be used to measure the effectiveness of a company's investment in it portfolio development.

The Claim Analyzer, Patent Ratings, Portfolio Analysis and Portfolio Valuation provide an integrated suite of services for patent professionals and portfolio managers. Portfolio owners and managers can consistently identify, create and fully exploit valuable patents and patent portfolios. Clients work smarter and faster, results are data driven and accurate. Whether your goal requires portfolio valuation, discovering companies with valuable patents, or determining the likelihood that a portfolio can be successfully licensed or litigated – we provide unrivaled insights.

If you have any questions or require more information about our services, please call 1-613-884-0172 or contact us. We'd love to hear from you.

Utilizing AI

Finding A Better Way

We reinvented the way to analyze portfolios by developing an AI platform optimized for patents. Clients work smarter, faster and achieve results that are data driven and accurate. Whether your goal requires portfolio valuation, discovering companies with valuable patents, or determining the likelihood that a portfolio can be successfully licensed or litigated — we provide unrivaled insights that are easy to use.

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