IP- Benchmarking There are multiple fields where the process of benchmarking could be applied and one of them is IP Benchmarking or Intellectual Property Benchmarking. Though first time the term was used in 1987, however, the field of IP benchmarking is quite new. The purpose of this presentation is to let the viewer know how he can benchmark himself using his IP and what associated metrics of the process he should consider. You can read the full article from here - http://www.greyb.com/why-ip-benchmarking-is-important/

1. IP Benchmarking
And its metrics
BY ­ GreyB Research
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2. In the recent years, the technology industry
has seen a significant rise in patent filing
activities.
2006
2007
2008
2009
2010
2011

3. This has presented some never seen before
problems in front of managements. For example,
Are we spending more money on patents as
compared to our competitors?
What is our ROI on patents?
Are we filing patents in the right direction i.e. in­
sync with our business vision?
Are we protecting our core products?
And many more...

4. These, and many such problems, led to
proliferation of a new performance metric
that today is known as
IP benchmarking.

5. What is IP Benchmarking?
?

6. What is IP Benchmarking?
A process where a company,
based on its intangible assets,
assess and evaluate its position in
the market compared to its
competitors.

7. The four metrics of IP Benchmarking
1. Selection of the competitor
2. Number of Patents Filed vs. Licensing
Revenue
3. Research collaboration with Universities
4. Age and Size of Company

8. 1
Selection of the competitor

9. 1
Selection of the competitor
Selection of the right competitor is
paramount when one evaluates its own
performance.

10. How it helps?
• It helps in getting the stats right
• It helps evaluate the right ratio of the
R&D investment to the number of
patents filed (PRDI)

11. How PRDI is calculated?
The PRDI ratio is calculated based on how the
company has invested in its R&D over the
period of time and how that investment has
converted into intellectual property

12. Yearly R&D Investment vs. Patent Filing

13. The best way to look at the PRDI ratio is by looking at
multiple companies simultaneously. For instance, the chart
below clearly shows that how AT&T investment strategy
has turned out to be better than all its other competitors.

14. 2 Number of
Patents Filed vs. Licensing Revenue

15. 2 Number of
Patents Filed vs. Licensing Revenue
This metric can help understand the value of your
investment if you are also involved in licensing of
your technology. This metric provides a bird's eye
view of revenue earned per patent.

16. This metric is useful if your are
• A technology company, such as Qualcomm,
that earns significant revenue by licensing its
technology
• A university whose sole objective is to link the
success of its intellectual property initiatives
with the number of licensing deals

17. For instance, in 2013, because of the high R&D spending over
the past decade, Nokia built a patent strong portfolio having
16,000 patents in the USPTO. As a result, Nokia generated
about $685 million in patent royalty income that year.

18. 3Research collaboration with
Universities

19. 3Research collaboration with
Universities
As the most active form of research takes place in
universities, establishing research collaboration
with universities leads to improvement in the PRDI
ratio

20. The analysis reflects the effect of university
collaborations upon company’s PRDI ratio

21. 4
Age and Size of a Company

22. 4
Age and Size of a Company
Factors like age and size of a company
matter in the process of Benchmarking

23. It affects where older companies have a
stable PRDI ratio while new companies
have unstable ratios with regular
fluctuations

24. Companies categorized by size

25. CONCLUSION
Thus, without proper evaluation of
PRDI ratio, it becomes very trivial to
perform benchmarking on Intellectual
property

26. After taking the entire factor that affect
PRDI ratio, one gets precise results that,
in turn, make it simple enough to form a
patent strategy.

27. This, further, leads to improvement in
the overall business strategy of the
company.

28. End of presentation.
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