In an era where data is the new oil, every industry, including law, is experiencing its transformative impact. Tech titans like Google and AI marvels like ChatGPT charge forward with data-driven strategies. At its core, a patent strategy is a systematic approach to obtain and protect IP rights. But what if we could supercharge this approach with similar data-driven insights to drive efficient patent strategies and effective outcomes?
At Outlier Patent Attorneys, PLLC, our strategic patent lawyers are bringing true innovation to the industry. We are focused on helping our clients secure and protect valuable patents without wasteful legal spend. The right data can make a big difference, giving us more time to focus on strategic work—where we believe the real value is. In this article, you will find an overview of data-driven decision-making as applied to the patent field and four ways it can reshape your patent strategy.
TL;DR
Data analytics provides a detailed, quantifiable view of the patent landscape, leading to more informed and successful outcomes. Harnessing data insights, organizations can craft efficient patent strategies, optimizing every facet from claim drafting, competitor analysis, and examiner behavior prediction, to the reduction of legal spend.
What does Data-Driven Mean?
Looking around, there is a plethora of data, data collection, and insights to be made. Organizations are reshaping their decision-making processes in what is called "Data-Driven Decision-Making" (DDDM). Data-driven decision-making is the process of leveraging insights using facts, metrics, and data to make strategic business decisions.
Data in its raw, untouched form might not be entirely useful, but it can be a goldmine of insights when processed and analyzed correctly. In the legal context, data-driven decision making uses both internal and external data as primary or supplementary factors in executing legal processes. This approach can improve the professional judgment of lawyers with factual insights, providing validation for decisions, uncovering new insights, and optimizing operations.
Quick Detour: The Role of Big Data
But first, let's understand what's behind the capabilities of data analytics: lots of data. Big data can broadly be defined as “combination of structured, semi-structured and unstructured data collected by organizations that can be mined for information and used” (Tech Target). In other words, big data represents extremely large datasets too complex for traditional data processing tools to handle.
In the patent law context, big data takes various forms like patent databases, legal precedent records, and patent examiner data (WIPO). Advanced technologies like machine learning and natural language processing can mine these datasets for valuable information to show us patterns in patent approvals, rejections, and litigation, offering predictive insights for future patent applications.
Four Key Ways that Data-Driven Decision-Making Can Help With Your Patent Strategy
At its core, a patent strategy is a systematic approach to obtain and protect IP rights through the patent process and inventions by patents. Many innovative companies stand to gain immensely from a well-designed patent strategy, bolstered by a data-driven approach. So, how does data come into play in your patent strategy?
Data-driven decision has already revamped the way many organizations approach their patent strategies. By leveraging vast amounts of data and analytical tools, companies can make more informed decisions regarding their IP. Here are four of the most notable ways that data-driven decision-making can be beneficial for your patent strategy:
1. Maximize Your Odds of Obtaining a Patent
Data analytics can shape your patent claims strategically. By analyzing claim terms linked to specific tech center groups, practitioners can draft applications that are more likely to land in a tech center group that is statistically favorable. (Learn more in this law article here)
Deep-diving into patent databases can highlight the types of innovations that have traditionally received patents and detect patterns in the approval process. They can also survey the patent landscape within specific industries and product areas, helping you pinpoint crowded and greenspace patent opportunities within your competition (WIPO).
Many practitioners use data analytics tools to monitor the patent activities of their clients' competitors. These tools can provide insights into the likelihood of a competitor’s claims being allowed or the scope of any patent that may result. By understanding the common characteristics and claims of previously successful patent applications, you can tailor your patent strategy to align with these trends or to find uncharted opportunities.
Here’s an example of our data visualization tool in action within the sleep aid industry:
2. Get Patents Faster and with Less Rejections
In fast-paced industries, the patent-pending duration (the period between filing for a patent and its grant) can significantly affect a business's competitiveness. Data analytics can trim this duration by analyzing the behavior of patent examiners and the common reasons for delays or rejections.
Once an examiner has been assigned to your application, data analytics can enhance your patent strategy by allowing you to assess various aspects of the examiner's behavior and anticipate potential challenges to proactively address them. This can help determine decisions such as whether conducting an interview with the examiner would be beneficial, or if appealing the case would be a wiser choice based on the examiner’s track record.
By identifying and addressing these factors in the initial application, you can streamline the process. Here’s an example of our patent examiner tool in action for an examiner, including the expected allowance rate and average expected number of office actions:
3. Obtain Broader Patent Coverage
Data analytics tools can assist in determining the optimal scope of your patent claims. By analyzing similar patents and the associated legal precedents, you can identify the extent to which broad claims have been successfully upheld in disputes. Once again, the right data can be invaluable in shaping your patent claims. Broad patent coverage ensures that your IP is protected against various forms of infringement.
Patent analysis that can also identify areas where new technologies might be emerging, providing an accurate picture of the patent portfolio landscape and addressing future areas which you might seek patent protection in.
4. Value Maximize Your Total Legal Spend
Here is an issue that many companies worry about: the cost of legal spending. No business wants to spend more than is necessary to obtain their patents. Limiting legal spending is just good business. Still, the reality is that legal expenditures associated with patent filing and protection can be substantial.
Data-driven decision-making can help ensure that your legal investments are well-spent. Our clients save an average of $9,000 per patent application because our patents are allowed with fewer rejections (See our approach here). They also have much higher odds of getting a patent allowed in the first place, saving office response costs. We have built argumentative strategies around common rejection reasons, enabling us to develop the "right-size" strategy, for example, to fit different examiners.
Data analytics gives you the ability to better forecast and assess the cost-benefit analysis of various aspects of patent filing, such as the choice of jurisdictions, the breadth of claims, and maintenance fees. The right data can provide information on how to tailor your patent application for better results and forecast solutions from identified issues.
Our Approach to Data-Driven Decisions in Patent Strategy
In the early stages, we focus on understanding our clients' value chains, recognizing stakeholders, and discerning the dynamics in play. We use advanced benchmarking tools to ensure our clients have all the information required to make informed decisions.
We also use our own suite of comprehensive patent analytics tools to identify patent opportunities and help you build your patent portfolio effectively. Our Patent Landscape Tool quickly and efficiently helps you to identify "greenfield" IP opportunities. Our Patent Valuation Tool unearths high-value opportunities. Our Competitor Benchmarking Tool helps you understand the competition and set reasonable targets.
With a sharp focus on maximizing value for our clients and eliminating unnecessary legal expenditure, we leverage data to create strategies that truly deliver. The strength of data is not just in the numbers, but how it shifts our focus to strategic work where the real impact lies. If you have any questions about data-driven legal decision-making, we are here to help. Contact us today to set up your completely confidential, no-obligation initial consultation.
If you're interested in the implications of big data for IP policy, you can read WIPO's article here.