ii-sdv 2014 patent valuation: building the tools to extract and unveil intelligence and value from...
TRANSCRIPT
![Page 1: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/1.jpg)
PATENT EVALUATION
Building the tools to extract and unveil
intelligence and value from patent data
April 2014 - Nice
Laurent HILL - Renaud GARAT
Copyright 2014
![Page 2: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/2.jpg)
PATENT EVALUATION
Evaluation is a systematic determination of a subject's
merit, worth and significance, using criteria governed
by a set of standards (…) to help in decision-making;
(…) any particular definition of evaluation would have
be tailored to its context
Copyright 2014
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Patent valuation vs. Patent evaluation
• Valuation: Assess economic worth
– How much ?
• Evaluation: Systematic assessment of worth to
assist in decision making in a given context
– Should I ?
• The first part of this presentation will try to contrast
methodology and intended use for both approaches
![Page 4: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/4.jpg)
Contrast uses
• Global valuation model: How much ?
– Provide a single number per patent, representing the
"economic worth"
– May be aggregated for any large corpus of patents
�Single value for a large portfolio
• Goal driven evaluation : should I ? (and why?)
– Answer a specific question
– Provide rational for the decision making process
�Reach quickly high quality, documented, decisions on
specific IP issues
![Page 5: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/5.jpg)
Examples: you choose the right approach
• How much has the value of US companies
portfolio grown in 2013?
• Are HP patents worth more than Apple's?
• Are my 10 nanotech patents worth licencing
out? to whom ?
• Which patent should I stop renewing this year?
![Page 6: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/6.jpg)
Global valuation models: how does it work?
• Three steps
1. Estimate value V for historical patents
• Based on renewal behavior
2. Compute predictor metrics P for same corpus
• Citations, family size, claim length, …
3. Build model
• Use machine learning techniques to estimate V=f(p)
• Now V can be estimated for any patent for
which we can compute the metrics
![Page 7: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/7.jpg)
Goal driven evaluation
• Our Goal: make the best decision on an IP issue
– Can we license out some of our patents? To
whom?
– Is this patent cluster offered to me for licencing a
good match for our company?
– For which patent should we stop paying annuities?
– …
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A process based on expert best practice
• To answer these questions, licencing professionals use
specific metrics, to compare the patents at hand with
comparable patents
• There is more or less a consensus in the industry on what
the main ones are
• High level, business driven metrics: legal strength, originality,
predator presence, citation velocity…
• These metrics contribute to the decision process, are
understandable by decision stakeholders
• Metric list depend on question being answered
![Page 9: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/9.jpg)
Nothing is absolute
• The core of the evaluation process is to compare
metrics value with the distribution of metric values
for a comparable set
• Values have no intrinsic meaning for business stake
holders
– Compare explaining: "our average velocity is 3.2"
versus "our patents get twice as much citation per
year as the rest of the industry".
• What is important is: how do the selected patents
compare to similar patents
![Page 10: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/10.jpg)
What is a comparable set?
• Building a good comparable set is key to this approach
• May be manual, expert work:
– combination of IPC classes, keywords, competitors…
– serious patent information expertise + time needed
• Questel of course advocates the use of our similarity
algorithm, allowing instant comparable set building.
– Based on a proprietary semantic engine, plus all other available
information: classes, citations…
– Much faster: usually all is needed is to decide where to set the
cutoff point
![Page 11: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/11.jpg)
Goal driven evaluation process
Select patents
Build comparable set
Compute metrics
Assess patents against
comparable set
Make a fast, documented, high quality
decision
![Page 12: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/12.jpg)
BUSINESS
NEEDS
IP RELATED
CHALLENGE
IP
SOLUTIONS
R&DPRODUCT
DEVELOPEMENT
GO-TO-
MARKET
ASSET
MONETIZATION
SPEED
R&D
MITIGATE
RISKS
SUSTAIN
COMPETITIVE
ADVANTAGE
MAXIMIZE
PROFIT
Portfolio PruningBusiness Dev.FTO
EVALUATING = BENCHMARKING
Business needs drive evaluation methods
Technology scouting
Licensing outExclude OthersPortfolio BuildingLicensing in
Evaluation
principles
Metrics-
based
comparisonCopyright 2014
![Page 13: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/13.jpg)
BUSINESS
NEEDS
IP RELATED
CHALLENGE
IP
SOLUTIONS
R&DPRODUCT
DEVELOPEMENT
GO-TO-
MARKET
ASSET
MONETIZATION
SPEED
R&D
MITIGATE
RISKS
SUSTAIN
COMPETITIVE
ADVANTAGE
MAXIMIZE
PROFIT
Portfolio PruningBusiness Dev.FTO
EVALUATING = BENCHMARKING
Business needs drive evaluation methods
Technology scouting
Licensing outExclude OthersPortfolio BuildingLicensing in
Evaluation
principles
Metrics-
based
comparisonCopyright 2014
![Page 14: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/14.jpg)
LEGAL
BestPatents
1. BENCHMARK
PATENTS
2. COMPARE
STRENGHTS &
WEAKNESSES
3. LEVERAGE
NEGOCIATION
POWER4. NEGOCIATE
TECHNICAL GEOGRAPHICAL
PotentialLicensors
Licensing-in
Copyright 2014
![Page 15: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/15.jpg)
BUSINESS
NEEDS
IP RELATED
CHALLENGE
IP
SOLUTIONS
R&DPRODUCT
DEVELOPEMENT
GO-TO-
MARKET
ASSET
MONETIZATION
SPEED
R&D
MITIGATE
RISKS
SUSTAIN
COMPETITIVE
ADVANTAGE
MAXIMIZE
PROFIT
Portfolio PruningBusiness Dev.FTO
EVALUATING = BENCHMARKING
Business needs drive evaluation methods
Technology scouting
Licensing outExclude OthersPortfolio BuildingLicensing in
Evaluation
principles
Metrics-
based
comparisonCopyright 2014
![Page 16: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/16.jpg)
Exclude Others
PLAYERSINVESTMENT
DOMINANCEINTENT
SUBSTITUTETHREATS
1. BENCHMARK
PATENTS
2. APPLY
INDUSTRY
PATTERNS
3. ABILITY TO
EXCLUDE
ASSESSMENT
4. ASSESSMENT
REPORT DETAILS
Copyright 2014
![Page 17: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/17.jpg)
BUSINESS
NEEDS
IP RELATED
CHALLENGE
IP
SOLUTIONS
R&DPRODUCT
DEVELOPEMENT
GO-TO-
MARKET
ASSET
MONETIZATION
SPEED
R&D
MITIGATE
RISKS
SUSTAIN
COMPETITIVE
ADVANTAGE
MAXIMIZE
PROFIT
Portfolio PruningBusiness Dev.FTO
EVALUATING = BENCHMARKING
Business needs drive evaluation methods
Technology scouting
Licensing outExclude OthersPortfolio BuildingLicensing in
Evaluation
principles
Metrics-
based
comparisonCopyright 2014
![Page 18: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/18.jpg)
COMPUTE
METRICS
ABANDON
SCAN PATENT
PORTFOLIOMANAGE
QUALITY RANKED
PATENTS
RENEW
Patent Portfolio Pruning
![Page 19: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/19.jpg)
BUSINESS
NEEDS
IP RELATED
CHALLENGE
IP
SOLUTIONS
R&DPRODUCT
DEVELOPEMENT
GO-TO-
MARKET
ASSET
MONETIZATION
SPEED
R&D
MITIGATE
RISKS
SUSTAIN
COMPETITIVE
ADVANTAGE
MAXIMIZE
PROFIT
Portfolio PruningBusiness Dev.FTO
EVALUATING = BENCHMARKING
Business needs drive evaluation methods
Technology scouting
Licensing outExclude OthersPortfolio BuildingLicensing in
Evaluation
principles
Metrics-
based
comparisonCopyright 2014
![Page 20: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/20.jpg)
LEGAL
BestPatents
1. BENCHMARK
PATENTS
2. COMPARE
STRENGHTS &
WEAKNESSES
3. LEVERAGE
NEGOCIATION
POWER4. NEGOCIATE
TECHNICAL GEOGRAPHICAL
PotentialLicensees
Licensing-out
Copyright 2014
![Page 21: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/21.jpg)
• Worldwide invention based family-grouped patent database
• Up-to-date normalized legal status info:
• Reassignments
• Oppositions
• Litigations
• Licensing
• Alive/dead state
• Comprehensive citation coverage
• Clean & normalized patent assignee names
Copyright 2014
Evaluation pre-requisites
![Page 22: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/22.jpg)
• Up-to-date patent classifications
• Deep indexing (semantic technical concepts)
• Sophisticated similarity algorithms
• Citations (forward & backward)
• Patent classifications (IPC + CPC)
• Semantics
• Broad choice of pre-defined valuation metrics (120+)
• Full user control over metrics (weighting)
• Fast on-the-fly metrics computing capacity
Copyright 2014
Evaluation pre-requisites
![Page 23: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/23.jpg)
Technical
Metrics
Copyright 2014
Sample charts: licensing out
![Page 24: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/24.jpg)
Legal
Metrics
Copyright 2014
Sample charts: licensing out
![Page 25: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/25.jpg)
Geographical
Metrics
Copyright 2014
Sample charts: licensing out
![Page 26: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/26.jpg)
Ranked
Patents
Copyright 2014
Sample charts: licensing out
![Page 27: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/27.jpg)
• Patents are a key business evaluation material
• Evaluation is driven by business needs
• Business needs define metrics & methodology
• Evaluation is contextual
• Context is set by benchmarking
• Benchmarking relies on similarity algorithms
• Data quality & value-add are essential
• Metrics adjustment lead to sharper conclusions
Copyright 2014
Conclusion
![Page 28: II-SDV 2014 Patent Valuation: Building the tools to extract and unveil intelligence and value from patent data (Laurent Hill and Renaud Garat – Questel, France)](https://reader034.vdocuments.mx/reader034/viewer/2022052618/554fa01bb4c90586258b4918/html5/thumbnails/28.jpg)
Thank you