Recent Market Focus on Industry Leading Patent Portfolios Informed by Ocean Tomo USPC Patent Quality Benchmark Study

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Ocean Tomo released the results of the Ocean Tomo USPC Patent Quality Benchmark Study and observations on patent litigation risk by industry.

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“The top 25 technology classes are directionally significant, having an average IPQ above 120 puts each among the top 30% of all rated patents.”

Ocean Tomo, the Intellectual Capital Merchant Banc™ firm, today released the results of the Ocean Tomo USPC Patent Quality Benchmark Study and observations on patent litigation risk by industry.

"The past few months have revealed a number of very large patent transactions and Ocean Tomo has been fortunate to be involved in virtually all of them advising clients on portfolio valuation, quality or risk," reported James E. Malackowski, the firm's Chairman and Chief Executive.

The Ocean Tomo USPC Patent Quality Benchmark Study provides a meaningful benchmark for those studying patent quality among the 430 United States Patent Classes (USPC) as defined by the United States Patent and Trademark Office (USPTO).

The study reflects Nanotechnology (class 977) as the number one technology class for patent quality, with the highest current average IPQ® score.

According to Ocean Tomo Managing Director Steve Lee, “It is not surprising that Nanotechnology has the highest patent quality rating (IPQ score) of 126.6 even though it is an emerging field. The quality of this sector reinforces the USPTO's recent addition of Nanotechnology as a designated class. An average IPQ score of 126.6 is equivalent to the top 20% of all U.S. rated patents.”

Ocean Tomo takes care to watch trends in class 705, Financial Services and Related Business Methods, given its own business activity, noting that class 705 is also among the top twenty-five USPC classes ranked by IPQ score in 2011. Class 705 scores have remained relatively constant for the past five years.

According to the Ocean Tomo USPC Patent Quality Benchmark Study, available in full at OceanTomo.com, the top 25 are:

1. 977 Nanotechnology - IPQ 126.5
2. 607 Surgery: light, thermal, and electrical application - IPQ 126.3
3. 365 Static information storage and retrieval - IPQ 126.1
4. 178 Telegraphy - IPQ 124.6
5. 326 Electronic digital logic circuitry - IPQ 122.8
6. 725 Interactive video distribution systems - IPQ 122.7
7. 438 Semiconductor device manufacturing: process - IPQ 121.9
8. 347 Incremental printing of symbolic information - IPQ 121.4
9. 623 Prosthesis (i.e., artificial body members), parts thereof, or aids and accessories - IPQ 119.9
10. 606 Surgery - IPQ 118.8
11. 711 Electrical computers and digital processing systems: memory - IPQ 118.7
12. 358 Facsimile and static presentation processing - IPQ 118.4
13. 712 Electrical computers and digital processing systems: processing architectures and instruction processing - IPQ 118.3
13. 51 Abrasive tool making process, material, or composition - IPQ 118.3
15. 463 Amusement devices: games - IPQ 118.1
16. 257 Active solid-state devices (e.g., transistors, solid-state diodes) - IPQ 118.0
17. 399 Electrophotography     - IPQ 117.9
18. 380 Cryptography - IPQ 117.4
19. 713 Electrical computers and digital processing systems: support - IPQ 117.3
20. 710 Electrical computers and digital data processing systems: input/output - IPQ 116.9
21. 705 Data processing: financial, business practice, management, or cost/price determination - IPQ 116.6
21. 704 Data processing: speech signal processing, linguistics, language translation, and audio compression/decompression - IPQ 116.6
23. 507 Earth boring, well treating, and oil field chemistry - IPQ 116.3
23. 709 Electrical computers and digital processing systems: multicomputer data transferring - IPQ 116.3
25. 382 Image analysis - IPQ 115.6

Malackowski adds, “The top 25 technology classes are directionally significant, having an average IPQ above 120 puts each among the top 30% of all rated patents.”

Looking alternatively at market indications of risk, the High-Tech industry leads the Fortune 100 with adverse patent infringement case filings (36%) followed by Retail (19.9%), and Telecom (10.7%). Financial Services, Aerospace, Insurance and Energy fall to the bottom of the list, each with an even larger number of firms than High-Tech but each impacted by less than 5% of patent cases filed. Visit OceanTomo.com to view the chart: Patent Cases Filed Involving Fortune 100 Companies.

Ocean Tomo PatentRatings® IPQ scores objectively rate patent assets based on a proven statistical methodology, with a median score being 100. The Ocean Tomo PatentRatings® system is the first market-validated software platform for objectively assessing patent quality, relative value, and competitive trends for patents, patent portfolios, companies, and technology sectors. The Ocean Tomo PatentRatings system uses a patented method of patent quality valuation, (USP 6,556,992 7,657,476 and 7,716,226 ) that is statistically based calculating the relative quality of all patents issued by the USPTO since 1976 using more than 50 independent and objective factors that are correlated to patent value.

About Ocean Tomo, LLC
Established in 2003, Ocean Tomo, LLC, is the Intellectual Capital Merchant Banc™ firm. The company provides financial products and services related to Intellectual Property, including expert testimony, valuation, research, ratings, investments, risk management and transactions. Ocean Tomo assists clients – corporations, law firms, governments and institutional investors – in realizing Intellectual Capital Equity® value broadly defined.

Headquartered in Chicago, Ocean Tomo has offices in Greenwich, Orange County and San Francisco. Subsidiaries of Ocean Tomo include: Ocean Tomo Risk Management, LLC; Ocean Tomo Asset Management, LLC; OTI Data Networks, LLC; Patent Marking, LLC; and Ocean Tomo Capital, LLC – publisher of the Ocean Tomo 300® Patent Index family. Ocean Tomo is the founder of the Intellectual Property Exchange International (IPXI), Inc. as well as the exclusive licensee and distributor of PatentRatings® system.

About the Ocean Tomo PatentRatings® System
The Ocean Tomo PatentRatings® system is the first proven, market-validated software platform for objectively assessing patent quality, relative valuation, and competitive trends for patents, patent portfolios, companies, and technology sectors. The PatentRatings® system provides customizable data solutions and delivers actionable data to companies, investors, bankers, attorneys and other intellectual property professionals and decision makers. Ocean Tomo PatentRatings® provides an unparalleled understanding of patent quality, technology implications, and strategic insight. Visit OceanTomo.com/Ratings for more information about data subscriptions or individual reports.

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