Examining Apple’s Blockbuster Purchase of Intel’s Assets
July 30, 2019 Accessing the Slides Presenters
Gene Quinn William Mansfield Kim Chotkowski President & CEO Head of Consulting & Customer Vice President, Head of IPWatchdog, Inc. Success at PatentSight – Licensing Strategy and A LexisNexis Company Operations at InterDigital, Inc. Patent Analytics AGENDA
Earlier this summer, Intel announced that some 8,500 patent assets (i.e., issued patents and pending patent applications) would be auctioned. Approximately 6,000 assets related to 3G, 4G, and 5G cellular standards, while 1,700 assets relate to wireless implementation of cellular standards.
Shortly after the Intel patent assets being announced as available for sale, Intel abruptly took the assets off the market in favor of negotiating with a single interested suitor. Very quickly news broke that the negotiations with that unidentified suitor were quite advanced, suggesting that the Intel auction announcement was nothing more than a negotiating ploy.
It has recently come to light that the unidentified suitor for the Intel patent assets was none other than Apple, just as IAM has predicted in its initial reporting.
We now know that Apple will buy the majority of Intel’s Modem business, including the patent assets, for $1 billion.
Today, we will discuss the Intel patent assets, the strength of the Intel patent portfolio and what this deal will mean for the 5G landscape. What Portfolio is Intel selling?
https://www.iam-media.com/frandseps/exclusive-intel-launches-blockbuster-auction-its-mobile-portfolio
6,301
938
Active Patent Patent Families Applications
Intel‘s Active Portfolio with ETSI declaration Inside the Intel ETSI standard portfolio
60
™ 50
40
30 Relevance
20
10 Technology 0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Market Coverage™ Intel’s filing strategy
Example Provisional Application: 61/707,784
ADVANCED WIRELESS COMMUNICATION SYSTEMS AND TECHNIQUES
WHAT IS CLAIMED:
1. A method of communication in a wireless network as shown and described herein. 2. A system for providing wireless communication as shown and described herein. 3. A device for providing wireless communication as shown and described herein.
+ 314 page specification
à 46 following US applications Competitive Position 14
12
10 InterDigital
Qualcomm 8 Apple Intel + Intel Apple Samsung 6 Patent Analytics Nokia LG Electronics
Patent Quality 4 Ericsson
2 ZTE Huawei
0 0 500 1,000 1,500 2,000 2,500 3,000 Portfolio Size Competitive Development Qualcomm 3000 Samsung LG 2500 Electronics Nokia InterDigital 2000 Huawei Intel 1500 EricssonPatent Analytics ZTE 1000 Apple Portfolio Size Portfolio
500
0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Reporting Date Competitive Development 20000 Qualcomm Samsung 18000 LG Electronics 16000 Nokia 14000 InterDigital
12000 Huawei Intel 10000 Ericsson 8000 Patent Analytics ZTE 6000 Apple
4000 Patent Asset Index™ Patent
2000
0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Reporting Date Competitive Development 20000 Qualcomm 3000 Samsung 18000 LG Electronics 16000 2500 Nokia 14000 InterDigital 2000 12000 Huawei Intel 10000 1500 Ericsson Patent Analytics 8000 ZTE 1000 6000 Apple Portfolio Size Portfolio
4000 Patent Asset Index™ Patent 500 2000
0 0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Reporting Date Reporting Date Technological Development 70,000 LTE Beyond LTE 60,000 Radio aspects
"Stage 2" – Tech Realization 50,000 "Stage 3" – Protocols
40,000 CODECs "Stage 1" – Services 30,000 MultiplePatent radio access Analytics
20,000 Patent Asset Index™ Patent 10,000
0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Reporting Date Subject by Owner – – – LTE LTE Beyond "Stage 2" Realization Tech aspects Radio "Stage 3" Protocols CODECs 1" “Stage Services radio Multiple access
Qualcomm
Samsung
Intel
LG Electronics Patent Analytics
InterDigital
Huawei
Nokia
Ericsson
ZTE
Apple Patent Analytics Why patent analytics matter Challenge: how to identify key patents and the companies that are currently owning them?
Key patent on Commercially High revenues and relevant technology successful product increase in stock price
A patent entitles its owner the Patent-protected products Being able to sell relevant right to exclude others from can be sold exclusively for products exclusively making, using or selling an up to 20 years maximizes revenues and can invention for a limited period impact stock performance of time How PatentSight handles the sheer data masses A new approach is required to efficiently identify key patents in the big data haystack
Global R&D Expenditures 2017 3.5 Million Patent Applications (in 2017)
About 80% of all patents have no commercial value 2.2 Trillion USD PatentSight overcomes problems of insufficient data quality
Patent data is public and can be EPO JPO sourced from various patent offices worldwide. USPTO CNIPA
IPDD
Incomplete ownership information Ambiguous legal status information Errors: Wrong translation & misspellings Patents are filed by applicants; in the US, this is Patents have lifetime of 20 years; in this time, Applicant names are often misspelled; especially in data usually a private person (inventor) -> no direct companies can sell business divisions or get from Asian patent offices -> matching of patent data with- information which company is currently owning the acquired -> no complete tracking of assignments out structured research is basically impossible patent and information about remaining lifetime We collect, clean and… Working process I
Building of patent families Worldwide patent data
>100m One patent family EPO USPTO PatentSight patents describes one invention database JPO CNIPA
IPDD …enhance patent data Working process II
Check for legal status & Evaluation of ownership Check for validity and patent families remaining lifetime by a unique algorithm based on two Individual strength of newly developed KPIs a patent family ? Competitive Patent Asset Index™ Impact™ Technology Market Relevance™ Coverage™ ∑ ?
Innovative strength of a company or portfolio (ability to achieve Ultimate owner concept: competitive advantage)! See who has commercial Objective, transparent and power over the innovation! empirically validated! Thank you.
William Mansfield Head of Consulting and Customer Success [email protected]