the photovoltaics patent landscape and how to commercialise ip
DESCRIPTION
Following the success of our patent landscape report on the photovoltaics market, ClearViewIP were invited to present our findings at the recent SuperSolarHub event ‘The Commercialisation of Solar R&D’ that took place at Loughborough University on 24th April 2013. To view the original patent landscape report, please visit: http://www.clearviewip.com/publications/photovoltaics/TRANSCRIPT
Photovoltaics & IP
Timothy Butler – Technology AnalystEmail: [email protected]
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Volume of PV Patent Applications
• Huge volume of patent filing in the field
• Keyword search for solar or photovoltaic returns over 180,000 results
• This report uses a more focussed keyword search to just look at photovoltaic modules
• Filing has increased rapidly both in real and absolute terms
• Filing follows a similar trend to installation rates up to 2010
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Geography of PV patent filings
• Japan dominated patent filings for the majority of the technologies history but has recently been overtaken by the US, China and Korea
• No real correlation between patent filing and PV installation
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PV Manufacture
Share Price
• Correlation between Japan’s decline in patenting activity and manufacturing dominance
• The reverse correlation is not however seen for the US
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Top Patent Owners
• Canon Sharp and LG the top three
• High proportion of Japanese companies (though some of their patents may have lapsed)
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Top PV Module Producing Companies2011
Rank
Company Number of solar
related granted
patents
Number of solar
related patent
applications
1 First Solar Inc. 86 510
2 Suntech 62 199
3 Yingli Solar Co Ltd 10 117
4 Trina Solar Ltd 60 267
5 Canadian Solar Inc. 5 33
6 Sharp KK 807 2667
7 Hanwha Solarone 10 23
8 Jinko Solar Co Ltd 1 12
9 LDK Solar 10 74
10 Solarworld 115 246
• Only Sharp and First Solar feature in top 20 patent holders and top ten module suppliers
• Some of the top manufacturers have very small patent portfolios, even using a very broad search criteria
• These small portfolios are in some cases contain only Chinese grants
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Does this lack of patents matter?
Yes…
• Clearly the companies think it matters as they are trying to expand their portfolios
– High volume of applications relative to grants
– Attempts to buy up patents from Evergreen Solar and Solyndra
No…
• There has been little patent litigation in the industry
• The industry has bigger problems
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Why have there been few litigation cases?
• The technology is mature
– Vast majority of products based on mono or polycrystalline silicon
– Changes are incremental
– Key patents were filed in the 70s/80s, have now expired
– What litigation there has been has focussed on enabling technologies (e.g Westinghouse vs Zep Solar)
• The market has become commoditised
– Economic factors have greater influence than incremental technological advances
Patent Filings by Technology Area
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• Relatively small proportion of patenting activity relates to “conventional” solar cells
• High and increasing proportion related to “second generation” technologies such as polymer and dye sensitised
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Possible Future Scenario…
• Second generation solar cells become commercially viable
• May allow industry to move away from dependence on fiscal policies
• Remains to be seen who will hold the key patents
• Huge amount of investment in patents, and an opportunity for a smaller number of players to dominate the market, so key patent holders are likely to want to defend their rights
• Hence we may see an increase in patent activity and litigation
How to Commercialise IP
Benoit Geurts – Senior ConsultantEmail: [email protected]
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ClearViewIP: ‘The Industry Leading Intellectual Property Consultancy’
Founded 2007
Extensive commercial and IP experience
Full range of IP services
Expertise across high-tech markets
Network throughout Europe, North America and the Far East
“ClearViewIP is an Intellectual Property Consultancy providing a range of services to help companies monitor, expand , exploit and better understand their IP
portfolio and its position within the industry”
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PV/Solar – Challenging Times
• Challenging time for PV industry- High debt- Low or negative margin- Consumer relying on subsidy
• Many companies are struggling
• Not enough cash for R&D
• Patent commercialisation opportunities- Loan against IP, sell and back license- Example - Jan 13, Fraunhofer ISE acquires 111 patent
families from Schott Solar. (undisclosed amount)- Licensing
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Technology Commercialisation
Commercialisation:
License out
License In
Collaborate
Acquisitions
Auctions
Sales
Benefits:
Raise Capital
Transfer Risks
Reduce cost
Brand association
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Technology Start Up Company
• Base technology– 1 or 2 patents
• Market opportunity– Not always quite as expected
• Business develops– Are products or services still in scope of patents?
– Is anyone waiting to strike?
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IP Health Checks
• Innovation
– Do new developments match current business?
• Is the business still aligned with early patents?
• Revisit the landscape with focus on where actual business is now
• Are you still in scope of original patents ?– Are any competitors ?
– Do you need to buy ?
– Any new threats ?
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Divergence
1 23
Company
products &
servicesPatents Patents
Company
products &
services Patents
• With growth, patents may become less well aligned
• License / sell original core patents?
• Acquisition to realign with new company focus?
Company growth over time
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Selling vs. Licensing
• Assignment = sale = transfer of total ownership
• Permanent, irrevocable
• Revenue through lump-sum payment
• Often gives free back license
• 6 mths for deal
• Not so dependent on market take-up
• Need infringement potential
• May bring lower income but a bird in the hand…
• Licence = contract granting exploitation rights
• Can be sole, exclusive, non-exclusive
• Can have minimum performance targets –revocable
• Can be limited to a period of time or geography or field of use
• Revenue through royalties
• Need know-how
• 18-24mths for deal
• Potentially larger total income but more risky (obsolescence)
Patent Sale Patent Licensing
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