International Business Machines Corp (IBM) dropped from the top spot for US patents last year, the first time in decades that the company has not claimed the most patents in a year, signaling a strategy shift at the long-time intellectual property leader.
IBM’s patent count declined 44 percent to 4,743, falling to No. 2 behind Samsung Electronics Co’s 8,513, Harrity LLP’s Patent 300 list showed.
Technologies such as semiconductors and hardware memory saw the largest drop in IBM patents, although the reduction was across all major types.
Photo: EPA-EFE
The decline reflects a strategy shift that began in 2020 to focus the patent portfolio on IBM’s core businesses and free engineers from the time-consuming patent process, IBM research head Dario Gil said in an interview.
“We decided to no longer pursue numeric patent leadership, but remain an intellectual property powerhouse and continue to have one of the strongest portfolios in the world in our priority technologies,” he said.
The Armonk, New York-based company has long prided itself on patent leadership, saying it had the highest number of filings for the past 29 years.
Intellectual property licensing and development has also been lucrative.
IBM has generated more than US$27 billion in income from patents since 1996, company filings showed.
However, that money has in the past few years slowed down as some companies have resisted licensing fees.
However, IBM is not done monetizing its intellectual property, Gil said.
“On the priority areas — hybrid cloud, AI [artificial intelligence], semiconductors, cybersecurity, quantum — we will continue to patent and defend that aggressively,” Gil added.
The shift mirrors IBM’s broader transformation away from hardware and legacy infrastructure toward cloud services and software.
Under IBM CEO Arvind Krishna, the company has made more than 25 acquisitions since April 2020, including AI software powerhouse Red Hat Inc.
IBM in November 2021 spun off a large portion of its infrastructure services business into a company called Kyndryl Holdings Inc.
The spinoff was not a reason for the patent decline last year, Gil said.
IBM has been a relative haven in the tech market meltdown, rallying 5.4 percent last year, compared with a 33 percent dip in the NASDAQ 100.
In the most recent earnings report, the company beat sales estimates and affirmed its cash flow forecast.
SAMSUNG, CHINESE FIRMS
Samsung has long been the runner-up before last year, being issued more than 8,000 new patents a year since 2017, Harrity’s list showed.
It was often awarded patents on visual display systems and voice communication.
Chinese technology firms such as TikTok parent ByteDance Ltd (字節跳動) and Internet firm Baidu Inc (百度) saw some of the steepest increases in patent issuance on the list.
For example, ByteDance has applied for a patent on a method of adding special effects to human bodies on video, commonly used in TikTok filters.
Tencent Holdings Ltd (騰訊) and Alibaba Group Holding Ltd (阿里巴巴) also saw large increases.
“Patent filings in China have been exploding for years,” Harrity analytics chief Rocky Berndsen said. “So as more of these companies do business in the US, we would expect the numbers to increase here as well.”
ISSUES: Gogoro has been struggling with ballooning losses and was recently embroiled in alleged subsidy fraud, using Chinese-made components instead of locally made parts Gogoro Inc (睿能創意), the nation’s biggest electric scooter maker, yesterday said that its chairman and CEO Horace Luke (陸學森) has resigned amid chronic losses and probes into the company’s alleged involvement in subsidy fraud. The board of directors nominated Reuntex Group (潤泰集團) general counsel Tamon Tseng (曾夢達) as the company’s new chairman, Gogoro said in a statement. Ruentex is Gogoro’s biggest stakeholder. Gogoro Taiwan general manager Henry Chiang (姜家煒) is to serve as acting CEO during the interim period, the statement said. Luke’s departure came as a bombshell yesterday. As a company founder, he has played a key role in pushing for the
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
CROSS-STRAIT TENSIONS: The US company could switch orders from TSMC to alternative suppliers, but that would lower chip quality, CEO Jensen Huang said Nvidia Corp CEO Jensen Huang (黃仁勳), whose products have become the hottest commodity in the technology world, on Wednesday said that the scramble for a limited amount of supply has frustrated some customers and raised tensions. “The demand on it is so great, and everyone wants to be first and everyone wants to be most,” he told the audience at a Goldman Sachs Group Inc technology conference in San Francisco. “We probably have more emotional customers today. Deservedly so. It’s tense. We’re trying to do the best we can.” Huang’s company is experiencing strong demand for its latest generation of chips, called
GLOBAL ECONOMY: Policymakers have a choice of a small 25 basis-point cut or a bold cut of 50 basis points, which would help the labor market, but might reignite inflation The US Federal Reserve is gearing up to announce its first interest rate cut in more than four years on Wednesday, with policymakers expected to debate how big a move to make less than two months before the US presidential election. Senior officials at the US central bank including Fed Chairman Jerome Powell have in recent weeks indicated that a rate cut is coming this month, as inflation eases toward the bank’s long-term target of two percent, and the labor market continues to cool. The Fed, which has a dual mandate from the US Congress to act independently to ensure