Peer to Peer Magazine

WWW.ILTANET.ORG 39 2015 issue of the Stanford Technology Law Review, delves more closely into the characteristics that reflect the value of a patent asset. This model codes each patent held valid and infringed upon during a six-year period — close to 400 patents total — and it identifies features associated with value. Here are key findings: • Practiced Patents: Patents giving rise to lost profit damages (i.e., practiced by the patent-holder in competition with the infringer) tend to be highly valuable • Upstream Patents: Patents that have more child applications are more valuable than both downstream/ improvement patents (continuations/ divisionals) and other patents on average • Proprietary Patents: Patents held by their original applicant that have not been transferred to a third party tend to be significantly more valuable than acquired patents • Cited Patents: So-called "forward citations" received from subsequent patents are highly correlated with value, with some important caveats NEW PATENT ANALYTICS TOOLS AND SERVICES Powered by these research finding and statistical models, our Patent Analytics Team develops and provides new tools and services to help companies make smarter decisions in patent-related matters. Two of these tools are showcased below: Our Portfolio Analytics tool evaluates patent portfolios and individual assets, and our Docket Analytics tool assesses liability expectations across one or more patent infringement disputes. Portfolio Analytics: The Portfolio Analytics tool evaluates patents in a company's portfolio to pinpoint key assets, test and benchmark valuations, compare aggregate asset worth, and highlight underutilized patents and potential value gaps. It also determines the expected value of individual patents and patent portfolios based on publicly available information regarding the assets and their owners. Using information related to patent prosecution history, family tree, technology class, structure of the claims and written description, forward citations, assignments and other factors, this tool generates value expectations for each patent in question and comparatively ranks them against each other. By grouping the patents into relevant subsets, aggregate portfolio value can be assessed and different portfolios can be measured against each other. The Portfolio Analytics tool provides a quick snapshot of both the aggregate portfolio value and relative worth of competing portfolios. Each individual patent asset is represented by a vertex in the graph, facilitating easy identification of the highest and lowest-value assets in each portfolio and across the set. With these capabilities, Portfolio Analytics is useful in several different transaction and monetization scenarios. For example: • In a transaction, this tool can be used to analyze portfolios of prospective targets for acquisition, licensing or financing/monetization • The tool is especially useful for ranking competing portfolios against each other and making pairwise comparisons and collective rankings • It provides a means of stress-testing valuation assumptions and focusing diligence resources, which is increasingly important in technology-centered deals • Companies can use Portfolio Analytics on their own patent portfolios to assess the expected value of particular families or technology-specific subsets and to identify key assets and areas to focus development resources Sample Output from Portfolio Analytics Tool (based on three competing patent portfolios)

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