What is your Patent Portfolio Quotient?

What is your Patent Portfolio Quotient?

About four years ago, I wrote a paper on how one should think about patents and patent portfolio – “What’s your patent portfolio quotient?” Companies often misunderstand patents and IP and waste an awful lot of resources on securing the wrong things and fighting the wrong battles. If patent strategy is integrated into the product and marketing strategy, companies do well. Given the cut-throat competition in the mobile space, it is even more critical to formulate good strategies. It is a good time to revisit the paper. Having seen the complete lifecycle of a patent from birth to end of life from grant to licensing to litigation, the paper offers some practical advise on building IP.

Abstract below and link for the paper at the bottom.


Over the last twenty years, the global economy has slowly transformed into a vibrant knowledge economy. With reduced barriers to entry and pervasive globalization, a small company in a developing world can compete for its share on the world stage. The invention of new ideas and products remains an integral part of the global economy and the commercial food chain. Patents are an invaluable tool to protect and commercialize the inventions. They are essential to creating the barriers to entry for rivals. They are needed for building the credibility and the confidence of investors, customers, partners, and employees. They are required for providing clarity as to the property ownership, for demanding leverage from the industry, and for generating sustainable revenue from licensing and sale.

In the global marketplace, amongst all the other competitive factors, innovation matters the most and patents can help deliver the competitive edge required to remain viable. Inventors who used to see patents solely as part of their defensive strategy (and to alleviate any future litigation risks) to prevent competitors encroach their space are looking to be more aggressive with their inventions to make patents part of their offensive and licensing strategy. To ensure the financial security of the patents, some companies are embedding their IP programs as part of their Knowledge Management and Risk Management initiatives where they capture know-how, harvest IP and ingrain IP into their product development lifecycles.

Patents will continue to grow in their contribution as a key corporate asset. Since much value is associated with patents, the industry need better tools to assess and to understand the valuation and the strength of the patent portfolios. This paper will introduce the methodology of Patent Portfolio Quotientâ„¢ (PPQ) to measure performance of your patent program and portfolio that enables a Return on Investment (ROI) driven approach. PPQ measures the quality of the patent portfolio and the patent program with clear policies and procedures as it relates to the lifecycle of patents within an organization from innovation to licensing or sale. We will review the importance of patents as a tool for competitiveness and their value to a corporation. Next, we will address – why a patent program should be integrated with product development lifecycle to extract the maximum value from their intellectual property assets. Finally, the paper will introduce the basics of PPQ and discuss what inventors and companies can do to increase their PPQ.

For rest of the paper, please download the PDF (22 pages, 1MB)