Today, patent litigation is a gigantic business as well as one of the most challenging areas for companies to navigate. And with litigation costs now reaching the millions, understanding the potential outcome of a case can save companies significant amounts of money.
One company, Innography, a patent analytics software provider, gives its clients better intellectual property (IP) answers for improved business results. Founded in 2007, Innography’s software suite combines unique correlation and visualization technologies to enable users to quickly gain insights for managing, extending and exploiting their patent portfolios.
I recently sat down with Tyron Stading, president at Innography, to discuss why Innography has become so successful and the current state of patent litigation.
The company’s solutions streamline and improve IP analysis to enable organizations to get products to market faster, uncover new revenue sources, keep track of competitors, preempt litigation claims and stay on top of IP-associated functions. Already in 2014, according to Stading, Innography has been named the winner of two content CODiE awards, including for Best Legal Information Solution, and was listed in the Open Data 500, a study of U.S.-based companies that leverage open government data. In fact, according to Stading, companies now require Innography experience on job postings because we are the gold standard in IPBI.
“Humans have a difficult time predicting which patents will be involved with litigation as only 2 to 3 percent of patents are ever litigated, but machine learning does a very good job to narrow the risk,” explained Stading.
So, Innography has developed a proprietary PatentStrength algorithm to predict which patents will be involved in future litigation, which takes the guessing out of risk management. PatentStrength has reduced the margin for error by 75 percent so companies can focus on the real threats both in the short and long term. This results in large savings in damages, attorney fees and licensing fees. “With foresight, companies can be more proactive to set up defensive strategies, avoiding litigation altogether,” he said.
These days, patents are valuable business assets in any company as patents provide a temporary monopoly to exclude others from selling a product in the market. According to Stading, for a business, this helps to protect market share and profit margin as they create competitive barriers that help protect brands and a product’s future. But, because this is so valuable, patents should also be considered a financial asset, no different than a stock or a bond; they can be traded, licensed or leveraged for direct financial gain.
Stading explained, “Patents represent hundreds of billions of dollars of value, and companies that treat patents as a financial asset are at a significant advantage over companies that just keep them locked away in filing cabinets. For competitive intelligence, patents can provide direct insight into where competitors are headed strategically – and this information, in and of itself, may be more valuable than ever before.”
Additionally, Big Data is the key to unlocking this inherent value. Patent information is comprised of huge amounts of textual data structures involving terabytes of information. “When unlocked through Big Data techniques and analysis, the insights are compelling, revealing the direction a technology is headed and even uncovering the roadmap for a specific company’s product plans. But, deriving these insights from the proliferation of information requires truly sophisticated Big Data analysis,” said Stading.