Launch Cipher

AST powers Cipher n/d to increase rational licensing and reduce patent litigation

29th November 2018 | Comments Off on AST powers Cipher n/d to increase rational licensing and reduce patent litigation

Aistemos and AST have announced the launch of Cipher n/d, a new approach to analysing patent information designed to increase rational licensing and reduce patent litigation. This collaboration brings together Cipher, the leader in the field of harnessing artificial intelligence (AI) to analyse patents, with AST, the leading provider of proactive patent defence solutions.

Cipher n/d takes its inspiration from a number of recent high-profile patent disputes where the challenge is to calculate the global royalty payable for a license to a large portfolio. While the courts recognise the efficiency in resolving disputes in this way, it is something of a radical departure from the one patent at a time approach.

Cipher n/d uses AST’s product taxonomy and data to help calculate the number of patents owned by one company (the numerator) and the total population of patents (denominator). By applying AI and machine learning to comprehensive IP data, Cipher n/d is optimised to provide objective and rational evidence to support companies across a range of strategic patent decisions.

 “Cipher n/d enables operating companies to make more informed, rational decisions when evaluating their patent portfolios,” said Nigel Swycher, CEO of Aistemos.

“Our collaboration will provide an unbiased view of companies’ patent portfolios by using an industry-accepted taxonomy created by AST that can be used as a reference point to add rationality to licensing negotiations.”

What is attractive about this approach is its objectivity and rationality. The inspiration comes in part from the Black-Scholes model developed in the 1960s for pricing European put and call options. The model was widely adopted, notwithstanding the fact that it makes some assumptions about the assets and the market that were always open to a range of views.

AST is the leading provider of proactive patent mitigation solutions, and its members include many of the top patent-owning companies from a wide range of industries including Cisco, Ford, Google, Honda, IBM, Intel, Microsoft, Oracle, Philips, SAP, Sony, Spotify, Uber and Verizon.

“We are always looking for innovative ways to make the patent markets more transparent and efficient and are excited by the potential that Cipher n/d presents to advance these goals. We believe that Cipher n/d is an important step towards a more comprehensive and standardised visualisation of the patent landscape for the entire industry” said Russell W. Binns, Jr., CEO of AST

As patents increasingly take shape as a functional asset class, algorithmic classification and formula-based calculations will lead to an increase in licensing and a reduction in litigation. Having objective evidence will enable more rational outcomes and will eliminate obfuscation, guesswork and gamesmanship which flourish in situations where asymmetry of information is rife.