Research findings: Why has Expandiverse Technology been cited over 1,000 times?

 

On the day the first Expandiverse patent issued it was already cited* more than 290 times by other patents. Within 10 months this new technology passed the milestone of 500 patent citations.

With over 1,000 patent citations today, could this be a defining advance? Of the 10 largest tech companies in the world, 8 of them have cited Expandiverse Technology over 220 times. These R&D leaders invest $billions to try and invent, build and lead our digital future. This is what they find:

 

Is this unusual? The average patent has just 3 to 6 citations in its 20-year life. Out of each million patents, only 100 patents are cited more than 100 times.

Expandiverse Tech is 10X that elite group.

What does it mean to be cited so many times, especially by the world’s biggest tech companies?

 

Three of the research studies that show patent citations as an indicator of value, importance and use

First research: More patent citations indicate a 54% higher market value premium

According toMarket Value and Patent Citations: published in the Rand Journal of Economics:  Patent “citations indicate the extent to which those innovations turn out to be ‘important’ and hence presumably more valuable” (p. 17).

This quantitative research studied millions of patents issued over decades to 2004. It reports:

  • The mean number of citations per patent is three. (p. 32)
  • Out of millions of patents, only a few dozen patents receive over 100 citations. (p. 25)
  • Just four patents received more than 200 citations. (p. 15)
  • Firms with 20 citations and more “command a staggering 54% market value premium.” (p. 4)

Second research: Citations are a quantitative indicator of strong emerging technology

A different kind of indicator of patent citations was calculated in Prediction of Emerging Technologies Based on Analysis of the U.S. Patent Citation Network,” published in the quantitative journal Scientometrics.

The authors said, “A predictor, called the citation vector, is defined for characterizing technological development to show how a patent cited by other patents belongs to various industrial fields. The clustering technique adopted is able to detect the new emerging recombinations, and predicts emerging new technology clusters.” (emphasis added)

For Expandiverse Technology, there are 4 clusters of companies citing Expandiverse Technology in their patents (clustering of the first 500 citations):

Four clusters:
Top right: Services
Top left: Software and Apps
Bottom left: Manufacturing
Bottom right: Devices, Games and Virtual Reality

 

 

Third research: Patent citations are the best metric for usefulness:

The value of patent citations is confirmed by Finding the Best Patents – Forward Citation Analysis Still Wins. The ROL Group’s Patent Ranking System used quantitative research to determine patent citations as the primary factor for identifying whether a patent is most useful or least useful. They explain:

“We believe that forward citations are a proxy for industry-wide R&D investment in a technology area. With more investment, there are generally more products. With more products, there is a higher chance of infringement. Infringement drives value and most likely meets a client’s needs. Specifically, a purchase either eliminates the client’s own infringement or provides a tool to use against someone else.”

The ROL Group calculated the primacy of patent citations by analyzing four relevant data:

  1. All issued patents from 2005-2014
  2. Litigated patents from the same period, 2005-2014
  3. Patents sold by brokers from 2009-2014
  4. Patents from brokered packages of patents.

They emphasized the importance of patent citations in two of the quantitative metrics:

“The results were striking; the sold… patents had exponentially more forward citations… there was evidence of significantly higher forward citations in the set of litigated patents.

 

How are patent citations used by Intellectual Property professionals?

How do IP professionals use patent citations in their work?

Using Patent Citations as an Effective Tool While Conducting Prior Art Search describes three of the five reasons patent citations are an essential part of prior art search strategies:

Identify a technology trend:

“Patent citations are one of the best sources to track the flow of innovation in a particular field of technology… citations help in recognizing trends in technology and innovation… It is also possible to identify seminal patents by analysing patent citations, among other factors. A seminal patent covers an invention which is considered to be so important that it creates a technological shift in a particular field of technology. A patent having a relatively large number of forward citations when compared to other patents in its field may be a seminal patent.”

Assess a patent’s commercial value:

“A variety of situations may require a market value to be estimated for patents. As an example, patent valuation may be required when a patent owner is looking for investors or manufacturers, in case of company takeovers, or during the buying/licensing of patents… It is generally accepted that a patent having numerous forward citations may turn out to be more valuable when compared to patents with fewer forward citations. This is because, having many forward citations means that the technology disclosed by the patent was used by many other inventors in subsequent developmental efforts, resulting in various new innovations that have their roots in this patent, thereby increasing the value of the patent.

Freedom to operate — Mitigate infringement risks:

“Freedom to operate studies are conducted to identify patents that might have the potential of being infringed by a product/process. In case patents that may adversely impact the freedom to operate are identified… there is a likelihood that claims of such citations may also be relevant in assessing freedom to operate.”

 

“Map” Expandiverse patent citations to an industry

In addition to the above data and analyses, breakouts by specific industries can be done, like this one for new Supply Chain technology:

 

 

Compare Expandiverse patent citations to all other patents

A leading IP professor ranked the most cited patents and posted:

 

They say a digital world is invented, designed and built.

If that’s true, imagine waking up one morning in your unlimited digital life and saying, “Welcome to the Expandiverse.”

*A patent citation is a later patent, or patent application, that cites this patent or its patent application.

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