© All rights reserved. Not for reproduc5on, distribu5on or sale.
Patinformatics, LLC®
Data Driven Decisions Patent Strategy and Analytics Services
Surviving the Upcoming Personal Fitness Bands Patent Wars - Utilizing Patent Analytics for Competitive Advantage & Decision Making
Anthony Trippe, Managing Director PATINEX 2014 – Seoul, Korea September 3, 2014
© All rights reserved. Not for reproduc5on, distribu5on or sale.
Patinformatics, LLC®
Data Driven Decisions Patent Strategy and Analytics Services
What is Patent Landscaping?
• Five to ten years ago, when some one asked for a
landscape they were looking for a map or a
picture of what the subject area looked like
• More recently the term has meant identifying the
“lay of the land” or exploring various aspects of a
subject area including looking at the
organizations involved and the time periods in
which they operated
© All rights reserved. Not for reproduc5on, distribu5on or sale.
Patinformatics, LLC®
Data Driven Decisions Patent Strategy and Analytics Services
Why Do We Develop Patent Landscapes or Patent Analytics?
• Too many decisions are made without proper intelligence or analysis
• The “old boy” network or rolodex model applies
• Too often analysis is being done by individuals who do not understand the nuances of patent information
• Analytics lower the risks associated with business decisions and ensure higher returns
© All rights reserved. Not for reproduc5on, distribu5on or sale.
Patinformatics, LLC®
Data Driven Decisions Patent Strategy and Analytics Services
Why Do We Develop Patent Landscapes or Patent Analytics?
• They are a tool to assist with long term strategic technical planning
• They involve work processes for helping technical decision makers make smarter decisions faster
• They include analytical process that transforms disaggregated technological information into relevant strategic knowledge about your competitor’s or a subject’s technical position, size of efforts and trends
© All rights reserved. Not for reproduc5on, distribu5on or sale.
Patinformatics, LLC®
Data Driven Decisions Patent Strategy and Analytics Services
Why Do We Develop Patent Landscapes or Patent Analytics?
• From 1966 -”We have the choice of using patent statistics cautiously and learning what we can from them, or not using them and learning nothing about what they alone can teach us.” - Schmookler, Innovation and Economic Growth pg 56
© All rights reserved. Not for reproduc5on, distribu5on or sale.
Patent information is required to make informed decisions about your company’s IP strategy
• IP strategy has to play a role in overall business strategy
• The two have to be considered simultaneously
• Patent information can provide input to establish business direction
• Who has Company Z assigned patents to without a press release or financial disclosure?
• Who are the major technology stakeholders in a given industry or within an industry vertical or segment? Are these the people I should partner with as I move into a new market?
© All rights reserved. Not for reproduc5on, distribu5on or sale.
Owning an ecosystem’s seminal patents allows for lower COGS – a competitive edge
1999 - Acquired 58% of Zenith stock and IP for $351M acquired
• LG bought patents early, now they are inside the DTV/ATSC consortium
• LG can now pay lower royalty rates
• LG’s cost of goods sold is far better than their Chinese competition who did not buy IP
© All rights reserved. Not for reproduc5on, distribu5on or sale.
A holistic view of patents as they pertain to corporate strategy requires an integrated approach
• Like a three-legged stool there are different elements to an integrated strategy
• Business goals
• Financial analysis
• Patent considerations
• All three elements have to be considered or the item won’t stand
© All rights reserved. Not for reproduc5on, distribu5on or sale.
AN ANALYSIS OF THE PATENT POSITION AROUND PERSONAL FITNESS MONITORS
A practical example of putting these ideas into practice
© All rights reserved. Not for reproduc5on, distribu5on or sale.
What is a personal fitness monitor?
© All rights reserved. Not for reproduc5on, distribu5on or sale.
Project objectives • Complete a high-level competitive analysis of
the fitness monitor IP landscape
• Assess FitBit’s specific position in fitness monitors
• Identify the main IP strategy opportunities and threats to FitBit’s business
© All rights reserved. Not for reproduc5on, distribu5on or sale.
Components associated with fitness monitors
• Battery
• Connector / Communications
• Casing
• Accelerometer
• Memory
• Processor
• Charger
© All rights reserved. Not for reproduc5on, distribu5on or sale.
Techniques associated with fitness monitors
• Flex membranes
• Testing/Programing
• Rigid Flex Boards
• Waterproofing
• Power management
• Activity algorithms
© All rights reserved. Not for reproduc5on, distribu5on or sale.
We find the following in some of the Jawbone (Aliphcom) patents
© All rights reserved. Not for reproduc5on, distribu5on or sale.
COMPANY IP ASSESSMENT – FITBIT & JAWBONE (ALIPHCOM)
© All rights reserved. Not for reproduc5on, distribu5on or sale.
What does the FitBit portfolio look like?
© All rights reserved. Not for reproduc5on, distribu5on or sale.
Breakdown of FitBit portfolio by Technology Category
0"
1"
2"
3"
4"
5"
6"
7"
8"
Monitoring"System" Monitoring"System"with"Display"
Ac?vity"Algorithm"
Pending"
Allowance"
Granted"
© All rights reserved. Not for reproduc5on, distribu5on or sale.
Observations on FitBit portfolio
• Very narrowly focused on activity monitoring device primarily for counting the number of stairs that a user climbs
• US only
• Reasonable number of granted patents but no depth
• Nothing on established chokepoints or components of the device
• Calorie burning calculations still pending
© All rights reserved. Not for reproduc5on, distribu5on or sale.
Observations on FitBit portfolio
• No forward citations
• Fair number of independent claims but several steps and all on small variations on same theme
• Should consider an IP buying program to protect themselves as market and share increase
• Already been sued by SportBrain – dismissed and hopefully the corresponding patent was licensed
© All rights reserved. Not for reproduc5on, distribu5on or sale.
Breakdown of Aliphcom portfolio by Technology Category
0"
1"
2"
3"
4"
5"
6"
Ac+vity"Algorithm"
Device"Control"
Health"System"
Power"Management"
Coa+ng"
Comm
unica+ons"
Data"Security"
Health"Algorithm"
Protec+ve"Overmolding"
Medical"Diagnosis"
Nutri+on"Algorithm"
Sleep"Algorithm"
2012"
2011"
© All rights reserved. Not for reproduc5on, distribu5on or sale.
Observations on Aliphcom portfolio
• Most applications have not granted yet!
• Potential for foreign coverage
• Coverage on power management
• Coverage on manufacturing
• Coverage on variety of activities, wellness and sleep
• Device control could be very interesting
© All rights reserved. Not for reproduc5on, distribu5on or sale.
Observations on Aliphcom portfolio
• Have Bluetooth elements in other products but don’t use it in Up product, why?
• No forward citations
• Should consider an IP buying program to protect themselves as market and share increase
• Have already had to recall first generation and re-issue product due to issues with waterproofing
© All rights reserved. Not for reproduc5on, distribu5on or sale.
THE BROADER IP LANDSCAPE
© All rights reserved. Not for reproduc5on, distribu5on or sale.
IP Landscape – Documents by Organization, Kind and Application Year
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
1 4 2 9 2 3 2 1
12 16
1 2 1 5 1 4 4 3
2 2 1 3 2 3 2 2 2 1 1
2 1 2 1 1 1 1 1 1 2 1 1 1
1 1 5 5 2 1
3 1 1 3 4 1
1 3 4 1 2 1
5 5
4 3
2 2 1 2
1 4 1
1 1 1 3 1
1 2 1
1 1 1 1 1 2
1 1 1 1 2
1 2 1
1 2 1 1
2 1
1 3 1
1 3
3 1
0 10 20 30 40
Philips
Aliphcom
Theranos
Seiko Epson
BodyMedia
Nike
Adidas
Polar Electro
Fitbit Inc.
Georgia Tech
P&G
Ya Man
Ci5zen Holdings
Tensys Medical
Valencell
Omron
Univ of Wollongong
Apple
Healthtech
Suunto
Univ Hong Kong Polytech
Xybernaut
© All rights reserved. Not for reproduc5on, distribu5on or sale.
A word about applications vs. grants
• Some people suggest that applications should not be included since they are an unknown quantity
• I believe they should be included since they demonstrate intent and investment but they should be segregated from the grants
• Applications are an option play since you don’t know what they are going to look like after prosecution
• Check the file wrapper and whether abandoned
© All rights reserved. Not for reproduc5on, distribu5on or sale.
Which companies have the most forward citations?
0"
100"
200"
300"
400"
500"
600"
700"
800"
Philips"
Aliphcom"
Theranos"
Seiko"Epson"
BodyMedia"Nike"
Adidas"
Polar"Electro"
Georgia"Tech"P&G"
Ya"Man"
CiHzen"Holdings"
Tensys"Medical"
Valencell"
Omron"
Univ"of"Wollongong"
Apple"
Fitbit"Inc."
Healthtech"
Suunto"
Univ"Hong"Kong"Polytechnic"
Xybernaut"
Sum$of$Count$of$Ci+ng$Patents$by$Company$
© All rights reserved. Not for reproduc5on, distribu5on or sale.
Thematic mapping of the domain can also highlight areas of focus
Red – Aliphcom Green – FitBit Yellow – Nike
Light Blue – Philips Dark Blue – Polar Electro
© All rights reserved. Not for reproduc5on, distribu5on or sale.
Can we begin to draw some conclusions?
• Nike – They have partnered with Apple and were willing to acquire IP from Phatrat – good portfolio for wristband
• Adidas – Partnership with Polar and acquired Vivometrics – also have a strong portfolio but more involved with clothing than wristband
• BodyMedia – Probably the best portfolio with regards to maturity, breadth and depth
© All rights reserved. Not for reproduc5on, distribu5on or sale.
• Should also run searches and perform similar analysis for chokepoint area – power consumption & Bluetooth connectivity for instance
• Early priorities for low power consumption and low power Bluetooth or alternative short distance communication standards will be very important in this area
• Buying programs should focus on this
Can we begin to draw some conclusions?
© All rights reserved. Not for reproduc5on, distribu5on or sale.
A few weeks after this case study was originally developed Aliphcom bought BodyMedia
• Case study completed on April 17th 2013 and presented during a workshop at the 2013 PIUG Annual Conference on April 27th 2013
• On April 30th 2013 Aliphcom d.b.a. Jawbone acquired BodyMedia for $110 million dollars
• BodyMedia was suggested in this study as having one of the best portfolios in this area and that Aliphcom was exposed
• It is widely reported that the acquisition is primarily driven by Aliphcom’s desire to own the BodyMedia patent portfolio
© All rights reserved. Not for reproduc5on, distribu5on or sale.
Patinformatics, LLC®
Data Driven Decisions Patent Strategy and Analytics Services
Have a look at: http://www.patinformatics.com • Deals with patent analysis issues at all
different levels and utilizing all of the different techniques
For More Information
Top Related