Patent mining is an important step in the process of transforming a patent portfolio from a passive liability into an active financial asset.
For many companies, a patent portfolio is an expense in the form of patent maintenance and application fees for various patents protected within the portfolio. However, portfolios can be profitable and potentially significant assets.
Experienced legal teams that specialize in intellectual property management and patent portfolios can identify undiscovered, leverageable assets in a patent portfolio.
Patent Mining for Asset Growth
Patent mining is the act of digging deeper into assets to discover additional opportunities. Patent mining involves a detailed assessment and valuation, relative to market realities and industry standards, of all patents currently in a patent portfolio.
In the current economic climate, building up a patent portfolio tends to be a sound investment. Intellectual property rises in value with reasonable predictability, and an effectively managed IP portfolio is a valuable asset to cultivate. Patent mining can increase that value.
Using AI in Patent Mining
Artificial intelligence and digitally-assisted methods of management improve patent portfolios. When businesses hold a patent portfolio that contains hundreds or even thousands of patents, the process of evaluating a portfolio may be an arduous one. Integrating technology can help streamline this process. In addition, it’s important to have an experienced team overseeing patent mining and patent valuation.
On the surface, this might seem costly. However, an effective audit of a patent portfolio will more than likely compensate for the initial cost.
Whether preparing the legal team within a company or outsourcing to experts, implementing patent mining and patent portfolio valuation, with an intent to mine for improvement, could vastly improve the asset library of a company.
Data Mining for Patent Valuation
Analysis of patent portfolios relies on a variety of data mining techniques. For this reason, digital and AI-assisted data mining tools improve the accuracy and efficiency of the patent mining process.
An important step in patent mining is establishing context. While the raw data provides a lot of information, some qualitative details also need to be considered. Subject matter experts who understand the marketplace and industry will provide essential insight into the valuation process. In addition, it’s vital to involve patent analysts who can make final qualitative judgments. Data experts should also be utilized to gather and analyze both quantitative and qualitative data. Collecting and analyzing data in various ways increases accuracy and decreases risk.
Data analysis of any kind employs different tools. These tools are tailored to specific stages of the patent mining process. A variety of digital and AI-assisted technologies improve the speed and accuracy of data mining and vastly increase the potential for discovering profitability in your patent portfolio.
Conducting an in-depth analysis of a company’s patent portfolio may appear costly and time-consuming, but when conducted effectively, a patent portfolio valuation may reveal profitable patents a company already owns.
How Long is a Patent Good For?
It’s important when managing a patent portfolio to know how long a patent is good for. Patents are generally effective for twenty years from their initial approval date. However, patent renewals requiring fees can be at different intervals.
It’s necessary to know details such as patent fees during the patent valuation process since the profitability of a patent is calculated as a return on investment over the length of time that a patent remains part of your patent portfolio.
A company’s patent portfolio overall has a high potential for profitability, if managed effectively.
At UnitedLex, our experienced team uses a state-of-the-art suite of AI-assisted tools for evaluating and categorizing the contents of your patent portfolio. We find the maximum profit-making potential of your patent portfolio while saving you time and costs. Click here to learn more about patent portfolio development and management.
With more than 3,000 legal, engineering, and technology professionals globally, UnitedLex enables legal organizations to thrive in the Digital Age. Over the past 15 years, we have successfully delivered eDiscovery, Source Code and Document Review, IP Monetization, and Contract Management Improvement services to over 25% of the Global 500, 30% of the Fortune 50, and 50% of the Am Law 100.
ContactUnitedLex to learn more about transforming your intellectual property management.