Find patents of Value… Faster!

Presenter

Peter Hanschke Director, Product Management [email protected]

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Housekeeping

• Everyone is on mute …please submit questions through the chat window • Question(s) will be answered during Q&A section 

…or during the presentation if there is time

• Slide deck and recording will be available next week

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Chipworks

Patent and technology partner to the world’s most successful high tech companies

Founded in 1992 to provide technical analysis capabilities to companies seeking to grow the potential of their IP and understand their competitors

Headquartered in Ottawa, Canada with over 112 employees – offices in Canada, USA, Europe, Japan, Korea and Taiwan

Provide solutions to over 200 global technology, semiconductor and electronics companies

Five in-house laboratories with advanced tools and equipment for in-depth, world-class analysis

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Foundation of our products and services are built on

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IP professionals are being asked tough questions How can I strengthen my negotiating position? Which competitors should I be concerned about? What are my core and non-core patents?

Can we strengthen our defensive positions? What are my most valuable patents?

How can I make my patents as strong as possible?

Helping you answer these and other questions with confidence is what Chipworks is all about.

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Agenda

What are valuable patents? Tools and processes

Using patent mining tools Demo Q&A

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What are valuable patents?

Value – A Technology perspective Assuming the patented invention is novel and not obvious, and the patent is “unencumbered” from a licensing stance Then the key factors that determine a patent’s value are • Is it used? • Can you prove it?

• Can you make a case for a reasonable royalty?

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Matching your patents to other’s products – consistently increases the patent value Patents

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Matching to

Products

Matching patents to products Combining our industry knowledge and market intelligence through product teardowns to map key patents to large revenue segments Smartphones $47 B

Desktops $8.4 B

Products

Patents

Tablets $15.7 B

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Patent #

Priority Date

Patent Type

US 7,000,001

3-Nov-93

Systems

US 7,000,003

13-Oct-92

Process

US 7,000,004

13-Jun-96

Circuit

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Smartphones

Tablets

Desktops

$47 B

$15.7 B

$8.4 B

X

X X

X

X

Identify patents higher up the supply chain

Brand / Consumer Smartphone, tablets and E-readers

OEM / Assembly Hon Hai Precision, Pegatron, Flextronics Component / Module maker Touchscreens, LED screens, Cameras Packaging assembly house Amkor PoP is in most phones and tablets Semiconductor company Synaptics, Qualcomm

Foundry TSMC, GloFo and Samsung 13

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Application Software

Operating Systems Software iOS, Android and Windows

Increasing value

Cloud

Tools and processes

Patents are becoming a ‘big data’ problem USPTO Patent Publications

700,000 Patent Applications

Patent Grants

Patent Application Trend

615,243

600,000

500,000

400,000

300,000

200,000

100,000

,92971

0 1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013

• Patent volumes increasing rapidly

• Estimated 3-5% of granted patent assets generate value for their owners 15

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Finding the right patents, faster through automation Technology classification & clustering

Semantic technology search

Patent similarity search

Patent analytics & benchmarking

Goal-driven custom mining

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• Patent mining tools allow you to filter, prioritize or analyze groups of patents

Finding the right patents, faster through automation Technology classification & clustering

• Tools operate on patent data 

Patent full text data - titles, abstracts, claims, disclosure



Patent bibliography classification codes, dates, assignment

Semantic technology search

Patent similarity search

Patent analytics & benchmarking

Goal-driven custom mining

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Staying on top of ‘big data’ with patent tools • New ‘patent tools’ appear weekly with features that fall into categories 

Patent database – raw patent data



Patent search – search of raw data



Patent analytics – trend analysis, clustering, classification, algorithms, etc.



Patent metrics – quantify patent value and/or quality

• IP teams use these features to analyze ‘big data’ • They need easy-to-use, high-performance software analytics & metrics • What can you really trust tools to do? 

Each has pros and cons (you have to know them)



The use of multiple techniques reduces overall error



Validation is a big part of tool selection, so choose carefully – we do!

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Using patent mining tools

Some typical IP monetization goals Prepare for an upcoming cross-licensing negotiation 

“I need 20 claim charts for an upcoming negotiation”

Identify patents for sale and achieving the best sale price 

“I would like to put a group of patents together for sale – say 10-20 patents in a particular technology area – with 1-2 patents that have a claim chart”

Anticipate and prepare for your opposition’s response 

“If we started a fight with them, what will be their response? Will their patents read on your product?”

Identify patents to acquire 

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“We need patents that read on company A, who might own patents that we could buy?”

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Prepare for upcoming cross-licensing negotiation or

Identify patents for sale • Ultimate goal in both these cases is to create claim charts to support your case – for licensing or sale

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Patent portfolio evaluation with mining Target

Mine

Screen

Criteria / Key Words

• Use automation to compare a group of patents and target company technology and products • Prioritizes which patents should be read first 22

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Inspection by engineers • Select those that are applicable to targets • Remove false positives selected by the automation

Evaluate

Preliminary evaluation of claims to prioritize patents based on whether we believe the invention is • In use today • We can prove it

Mining example: Larger portfolio mining Goal: Find and document 10 hits against GPUs Steps: • Identify GPU standards, protocols, architectures, technologies • Build filter model(s) in automation-assisted tool(s) • Filter portfolio using model and tool(s)

• Iteratively refine model(s) until precision is acceptable

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Prioritize by “likeness to GPU” patents Patent portfolio A GPU company’s patents Patents asserted against GPU company

IPCs

IPC Likeness

Sorted portfolio

• Chipworks’ IPC likeness tool gauges the similarity of a patent to patent reference set using IPCs

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De-risk

Anticipate your opponent’s response • Based on the premise that most companies tend to write patents around the technology they produce – • Looking at their patent portfolios is an inexpensive way of understanding a potential opponent’s response

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Demo – KMX Text Analytics Tool

Chipworks Patent Analytics • Focused exclusively on the semiconductor and electronics markets • Chipworks Patent Analytics solution includes: 

License to KMX text analytics tool



Chipworks services

• Chipworks' uses KMX to achieve IP goals every day • Chipworks Service includes: 

KMX training tailored to your IP group



Reusable classifiers derived from our patent back-file

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A patent data set to bootstrap your analyses



On-going support and maintenance

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Chipworks Patent Analytics

KMX Text Analytics Tool

Chipworks Services

Semiconductor Patents (USPTO) • Over 20,000 active patents and applications • Each patent is represented by a dot on the landscape

• Topographic peaks are distinct technology concepts – and annotated with representative words

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Overlay two different patent portfolios

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Avago and LSI Patent Portfolios

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Twitter 946 US patents as of Feb 2014 – after IBM patent acquisition

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Close • Identifying patents of value is an important starting point for any patent monetization strategy • Key factors determining patent value 

Use of invention



Whether you can prove it



Size of the market (and where in the supply chain) the invention is used

• Patent Analytic approaches help you sort through patent portfolios to identify patents of value • and identify which ones to read first!

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Q&A

Thank You For over two decades, intellectual property teams and outside legal counsel have trusted Chipworks’ Patent Intelligence Services to help them identify and fully leverage their best patents, protect their competitive position, prepare for litigation and develop successful IP strategies.

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