Patent Scoring in
Patent ranking helps give you insights into the qualities of the patent portfolios held by companies in a given space. You can use it to benchmark your patent portfolios against the competition and to optimize your maintenance spending. It helps you align your intangible assets with your business goals.
PatSeer’s qualitative tools assess patents on patent family level and also on the overall portfolio level to give you insights into the quality of the patents held.
Why Use Patent Scores?
With the increasing volume of patents in an ever-increasing technology space, it is no longer practical to manually analyse all the records in order to give them a quality rating. Tools like PatSeer can automate this analysis by considering the key contributing factors that you would normally use in your assessments. This helps you:
- To rapidly assess patent portfolios and identify stronger or weaker portfolios
- To help decide if you want to buy, build or license a technology
- To find potential licensable art within your portfolio
- To detect pioneering R&D early on and find promising new entrants
- To optimise your patent maintenance spend by identifying the weaker patents
PatSeer Patent Scoring for a Patent Family
PatSeer evaluates each patent at its family level (simple family) against a set of different parameters. The quality scores at the family level include – citation quality, legal quality, market quality, and document quality. Each individual score is first normalised for age and class. By doing this, we are essentially comparing patents belonging in the same technology space and in the same year range against each other in order to rank them. Here is a brief description of each:
- Citation quality (CQ) – This score relies primarily on the count of forward citations, the category (X/Y/I/102/103) they belong to, how recent the citations are, and the spread of classes they cover. There is a positive correlation between the number of citations received and the patent’s commercial value. The probability of a record with a higher citation score being core to the product portfolio and being used in company’s offensive strategy or for monetization is higher
- Market quality (MQ) – This score is calculated over the geographical coverage of the patent family. Higher GDP countries have higher weightage. Granted patents and pending applications that are not abandoned or rejected are considered. A higher MQ indicates that the invention is well covered and protected across different geographies and so is deemed to be more valuable.
- Legal quality (LQ) – Indicates the aggressiveness and investments of the company to protect the invention and is also a measure of its perceived threat to the competition. Legal quality is based on alive/dead patents, if alive, whether the patent is granted or pending; number of active family members, remaining life of invention, litigation, oppositions, re-examinations, NPE ownership.
- Document quality (DQ) – The technical quality indicator of the patent. A higher DQ indicates innovation quotient and the capabilities of the company to innovate. Science linkage, co-applicants, technological scope, inventor count, claims, first claim word count, SEP/Orange book declarations are considered in deciding the document quality.
All four scores are then combined to get a single 360° Quality score for the patent family. The 360° Quality score is calculated as a weighted average of all the 4 contributing scores i.e., Citation score (CQ), Market Quality (MQ), Legal score (LQ), and Document score (DQ). The weights applied are in the order: CQ > MQ > LQ > DQ and the highest weight is given to the citation score followed by the market score.
PatSeer Patent Portfolio Scoring
There are two key metrics for scoring a portfolio of patents. Quality metrics that calculate the patent value at portfolio level are portfolio quality and portfolio value index.
Portfolio Value Metrics:
- Portfolio Quality Index (PQI)– Portfolio Quality Index for a portfolio is derived by calculating the 90th percentile value over the patent family scores for all the families present in the portfolio. The 90th percentile value gives a good indication of where the top patents within the portfolio lie. This score isn’t biased by the overall size of the portfolio and so helps bring emerging players with higher quality albeit smaller portfolios into the radar.
- Portfolio Value Index (PVI) – The Portfolio Value Index is the sum of the 360Q scores of all the families present in the portfolio. Larger portfolios will tend to have higher Portfolio Value. This score is particularly useful to see the growth of the portfolio quality over time.
PatSeer also provides two additional indicators of patent technical quality:
- Generality – A high generality score suggests that the patent had a widespread impact since it influenced subsequent innovations in a variety of fields. Generality is calculated by considering the percentage of citations received by a patent belonging to a set of patent classes.
- Originality – It is based on backward citations received by a patent and the patent classes covered by the citations. If a patent cites previous patents that belong to a narrow set of technologies the originality score will be low, whereas citing patents in a wide range of fields would give a high score.
PatSeer Pro X edition provides multiple visualizations that help you study large patent datasets by plotting the portfolio quality or market quality against portfolio size or invention age on X, Y axis to identify leaders, challengers, visionaries in a technology space. Such qualitative data analysis is done in just a few minutes whereas such detailed analysis can take weeks or months of reading through patents.
Leveraging these scores individually and collectively helps bring qualitative insights to the overall analysis being done and helps make more informed decisions on your IP strategy.
PatSeer is being successfully used by corporations to evaluate the strengths and weaknesses in their portfolios. With powerful searching capabilities, integrated analytics, patent assignment insights, scoring matrices, PatSeer can cover all your needs and help you make an informed decision. Contact us to learn more.