A few examples that validate the strategic importance of patent information:
- IBM generated US$ 562 million by the sale and other transfer of IP in FY ending December 2003.
- Ring-pull cans: Inventor licensed the system to Coca-cola at 1/10 of a penny per can. During the period of validity of the patent the inventor received 148,000 UK pounds a day on royalties
- Amazon.com protected its business method by patenting its one-click method. This not only aided the company in protecting its methodology from competitors, but also helped it in creating a niche for itself amongst a multitude of shopping portals.
- Microsoft has moved from 1 patent in 1990 to over 2500 patents in 2002.
- Gillette Mach 3 is protected by a strong portfolio of 35 patents (including patents on the manufacturing process), which deters competitors from entering the “triple-blade razor” market.
- British Telecom’s (BT) failure in identifying and analyzing the true potential of the hyperlink patent (filed in 1976 and granted in 1989) not only resulted in a lost opportunity but also led to a legal battle, which BT eventually lost.
Worldwide companies are increasingly pursuing patent protection of their innovations, and are looking at building large patent portfolios. For example, in the five-year period, 1997-2001, the USPTO granted almost half a million patents. Over 700 companies/institutions were granted over 100 patents or more in these five years. The number of patents filed by these organizations is much more. These numbers clearly indicate that there is a great deal of patenting activity in companies across the world.
