Sunday, July 23, 2006

[The] Patent Matrix

Law Wire brings the attention of readers to Michael Kaminski's Spring 2005 paper on "Measuring the Patenting Success of Companies: Metrics and Measurement for Patent Departments" where he "describes 27 possible metrics and measurements that a company can choose from to describe its patent activities:"

Number of Patents Issued
Number of Patent Applications Filed
Number of Invention Disclosures Received
Comparing the Number of Patents Obtained to the Number of Patents Issued to Your Competitors
Illustrating How the Patents or Applications Cover Products or Technology
Protection of Market Exclusivity
Patent Use Indicators
Ratio of Sales to Patents
Market Impact of Patented Innovations
Added Product Value From a Patented Feature
Volume of Sales That Is Patent Protected
Effects of Expiring Patents on Company Performance
Money Saved by Abandoning Patent Protection for Products Removed from a Product Line or No Longer Being Developed for Introduction
Money Savings From Abandoning Low-Quality Patents
Amount of Revenue Generated Through Licensing
Non-Monetary Value From Licenses
"Technology Cycle Time" of Cited Patents
"Technology Strength" Measurement
Calculating Value Using Patent Citations
Value of a Patent or Groups of Patents Calculated Through a Discounted Cash Flow Analysis
Value of Intangible Assets
Rate of Return on Intangible Assets"
It is useful to remember the five fundamental roles of patents in facilitating business success," writes Mr. Kaminski. "Such roles should be reflected in whatever metrics and measurements are used," including:
Patents Protect Core Technologies From Competitor
Patents Attract Investment
Patents Prevent Competitors From Inventing Around Critical Inventions
Patents Can Create a Tool to Improve the Firm's Negotiating Strategy
Patents Can Be Used as Offensive Weapons in Market Competition

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