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IBM 4,169, Google 58: Top 2008 US Patentees

There's nothing that can make you sit back, scratch your head, and wonder at the correlation between innovation and patents granted than looking at the top 300 list published by the Intellectual Property Owners Association, or IPO. This summary of how many utility patents companies received in the US last year was fascinating, both for those who racked them up and the corporations that didn't. Some at the lower end of patent activity -- Google, Yahoo, and even Apple -- raise the question of whether they are properly protecting their intellectual activity, or if they are leaving themselves open to being outflanked by competitors.

Let's start with a table of the top 25 recipients.

Top 25 US Patent Grantees for 2008
Rank Company # Patents
1 IBM 4,169
2 Samsung Electronics 3,502
3 Canon 2,153
4 Microsoft 2.043
5 Intel 1.772
6 Panasonic 1,760
7 Toshiba 1,575
8 Fujitsu 1,475
9 Sony 1,461
10 HP 1,422
11 Hitachi 1,301
12 Siemens 1,288
13 Micron Technology 1,277
14 GE 1,243
15 Seiko Epson 1,219
16 Fujifilm 863
17 Ricoh 851
18 AT&T 820
19 Infineon Technologies 809
20 LG Electronics 805
21 Honeywell 774
22 TI 755
23 Cisco 704
24 Honda Motor 703
25 Denso 655
Notice how dominant high tech firms are. In fact, ignoring GE as a conglomerate for a moment, Honda seems to be the first name from a different industry. What I found surprising, though, were some of the top of mind tech stalwarts that were not top of list -- in fact, that were toward the bottom.
Some 2008 US Patent Grantees Surprising
Rank Company # Patents
200 Adobe 86
100 Advanced Micro Devices 194
107 Apple 185
119 Dell 159
103 EMC 192
292 Google 58
208 Juniper Networks 81
246 Sony Ericcson 70
272 Symantec 64
175 Verizon 98
258 Yahoo 67
Remember, these are utility patents -- that is, those focused on a real invention and not design. So, for example, Apple received 254 patents, but many were design patents. What is surprising, though, is how relatively few patents these companies obtain, particularly compared to their competition, raising the question of what drives their intellectual property strategy. There are a number of approaches a company could take:
  • IBM's "book 'em, Danno" playbook, where virtually everything seems to get sent in to the USPTO.
  • A more measured approach of seeking protection for key developments, seen more in the middle of the IPO list, which reduces the costs of participation. For example, I've had top IP lawyers at EMS tell me that the company works IP protection on a specific budget, which drives them to focus on what can provide the greatest strategic return on spending.
  • What we might call the "eat my stylish dust" concept, where much of the focus is on design and keeping far ahead of competitors in terms of products and technology implementations that are appealing to consumers.
  • The "I've got the sun in the morning and the moon at night" school, which, by the nature of its business, might have more limited natural utility patent outlets, particularly as the patent office seems to take a dimmer view on slippery areas like business methods.
There are still companies like Google and Yahoo and Apple that you'd think would be paying more attention to formal technology protection, but aren't. It might be that Google, for example, is going more the trade secret route, doing new things in search but, because it's all hosted, knowing that the mechanism isn't available. By not patenting, Google avoids giving away insight into how it runs search -- and, importantly, how companies could game the system.

But still, such companies are presumably developing technology in many areas. What if someone else files something similar first or comes up with some aspect that blocks what they do? This is where depending on speed or secrecy can be a dangerous tactic. The U.S. has a first-to-invent approach to patents, but does that do any good if the first inventor never files an application? It may be that they are leaving themselves vulnerable to an in-depth analysis of their patent holdings.

So far we've been looking at what companies did last year, so how active have they been during 2009? Here's a chart with the top ten from 2008, the number of patents they've received so far this year, and how that compares for the number they received in the same period last year. Note that I'm including design patents here, because the USPTO search engine, which is supposed to be able to list only design patents (letting me subtract them from the overall number) doesn't seem to be cooperating.

Top 10 2008 v. 2009 Patent Grantees Through May 15
Rank Company 2008 2009
1 IBM 1,393 2,730
2 Samsung Electronics 1,685 1,513
3 Canon 618 659
4 Microsoft 2.043 1,017
5 Intel 742 568
6 Panasonic 22 701
7 Toshiba 721 736
8 Fujitsu 593 600
9 Sony 810 819
10 HP 525 479
The variability is interesting, and in some cases it might make you wonder whether the differences represent past emphasis on major new technology roll-outs. And now for our notable laggers:
Lagging Patent Grantees, 2008 v. 2009 Through May 15
Rank Company 2008 2009
200 Adobe 30 36
100 Advanced Micro Devices 83 76
107 Apple 95 105
119 Dell 61 90
103 EMC 58 83
292 Google 21 34
208 Juniper Networks 27 41
246 Sony Ericcson 1 0
272 Symantec 55 65
175 Verizon 42 33
258 Yahoo 27 44
PTO image via Flickr user dkpto, CC 2.0.
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