Close
Contact us
Close

13th April 2020

Portfolio Optimisation Report – Key Findings

Incorporating the findings of the “How Many Patents are Enough?” survey conducted in collaboration with IAM

Share this page:

Most patent experts believe a well-balanced patent portfolio reduces the risk of patent litigation, but what is the right size and fit of portfolio? Cipher enables you to get the data you need efficiently, quickly and accurately to inform the modelling of your portfolio and get closer to answering this crucial question.  Read the full report:

Cipher Report on Portfolio Optimisation

The Cipher Report on Portfolio Optimisation is the first global study specifically focussed on analysing the approaches taken to balancing patent portfolios in an economy where the impact of disruptive technologies has never been more important.

Key findings

Over $40 billion is spent on patents each year, but less than 20% of companies report that their portfolio is the right size

Hear all four Key Findings from the Cipher Report on Portfolio Optimisation

Portfolio optimisation is a challenge faced by all organisations which choose to protect their investment in technologies with patents. This is true irrespective of sector, geography or portfolio size.

Patents are one of the primary ways that companies protect their investment in technology. The challenge is to optimise patent protection for the technologies delivering the most value and to protect the organisation from competitive threats. What is valuable and who is a competitor changes all the time. It is hard for the teams tasked with policing the company’s intangible assets, and specifically intellectual property, to keep up with the drivers of corporate strategies. The result is typically the overstocking of patents in some areas and understocking in others. This imbalance means that patents are failing to deliver full value for the money spent.

Does a well-balanced patent portfolio mitigate the risk of litigation?

<img src=

Over 75% of patent owners surveyed agree that a well-balanced patent portfolio reduces the risk of patent litigation. For the vast majority of companies, this is the most important strategic objective.

While patents confer the legal right to exclude others, the majority of patent owners regard the primary function of their patent portfolio to be defensive – namely, to neutralise the threat of litigation. With 76% of companies surveyed believing that a well-balanced portfolio reduces that risk, there is considerable focus on how best to achieve that balance.

Is Patent Portfolio Cost / Strategy presented at your CTO, CFO and/or Board level?

<img src=

Companies across all sectors including industrials, automotive, technology and healthcare are being disrupted by new technologies, and increased attention is being given to both the strategic benefits and cost of building large patent portfolios, with around 70% of organisations reporting scrutiny at CTO, CFO or board level.

It has long been the case that the CTO, CFO and others have accepted patent costs as necessary without understanding the strategic rationale for this investment. This has changed, with the vast majority of companies now presenting patent strategy outside the IP and legal teams.

Organisations spend an average of 9% of their patent budgets on strategic patent intelligence

While over 70% of patent budgets continue to be spent on new patents and maintenance of existing portfolios, on average 9% is being invested on analysis and modelling to communicate the strategic benefit of patent portfolios. This investment is entirely justifiable in an environment where, on average, 4.5% of revenues can be exposed to third-party patent claims. 

Strategic patent intelligence includes being able  to evidence how your patent portfolio meets its strategic objectives. For those companies which use their patents to neutralise threats posed by others, this means having the ability to understand not only the relevance of the patent portfolio to the company’s own technologies and products, but also how their portfolio maps to the products and technologies of those who pose patent risk. While this requires sophisticated modelling, this is justified by the significant risk to revenue posed by the proliferation of patents.

Cipher Report on Portfolio Optimisation


 

With Cipher you can…

Portfolio Optimisation connecting cogs

Optimise your portfolio

Ensure you have the right portfolio to meet your strategic patenting objectives.

Read more
Competitive Intelligence

Gather competitor intelligence

Understand who’s doing what by automating patent to technology mapping.

Read more

Model cross licensing

Combine patent and revenue data to determine rational licensing outcomes.

Read more

Manage your budget

Justify patent budgets to CFOs and others to communicate the impact of your investment.

Read more

Conduct due diligence

Automate manual reviews for efficient execution of M&A and licensing transactions.

Read more

Tackle inbound patent assertion

Be prepared with evidence to create a fast and effective threat assessment.

Read more

Benchmark your portfolio

Assess your portfolio in comparison to other owners through your technology lens.

Read more

Monetise your portfolio

Identify opportunities to create value through licensing or sale of patent assets.

Read more
Technology Trends icon

Predict technology trends

Track new technologies of today and discover the unknown owners of future disruptive innovation.

Read more

Insights and Events

Due Diligence: don’t make the easy things hard

Advances in automated approaches to due diligence increase efficiency and reduce transaction costs – making the easy things, easy.

Read more

Next Generation Solar

What are the emerging technologies for Solar and who are the key technology players for Solar and the Energy Transition?

Read more

Evidence based decisions

Episode 1, Season 1
The road to evidence based decisions is the first episode of the podcast series Cipher Vision.

Read more

SPIF Press release

Launching SPIF, bringing transparency to patent data and making patent management and transfer more efficient.

Read more

Next Generation Batteries

Who are the key technology players when it comes to the Energy Transition and Battery technologies

Read more

Cipher Benchmarking Study

Hear from Google, ARM, Facebook and many other large patent owning organisations in the full Cipher report. Take a look at what the world’s patent owning organisations are saying about benchmarking and its importance in patenting strategy.

Read more

Improve your patent strategy now

Speak to the Cipher team today.