Quality and Value - Definitions & Validation

Gain a macro view of the portfolio’s quality and value, and benchmark against the top patent owners in the technical field.

Definitions

First, what are Patentcloud’s Patent Quality and Value Rankings?

Patent Quality Rankings

The Quality Ranking indicator indicates the relative eventuality of prior art references being found for a patent, which can threaten its validity.

The indicator considers the following factors (based on pre-grant information):

  • Qualifications and profile of the attorneys and the examiners
  • Potential prior art references
  • Structure of independent and dependent claims

Patent Value Rankings

The Value Ranking indicator reflects the relative tendency of a patent to be practiced or monetized after its issuance.

The indicator considers the following factors (based on pre-grant information):

  • Qualification and profile of the inventors and applicants
  • Stage of technology lifecycle
  • Citations
  • Pre-grant transactions


Patents in the top 25% of the Quality / Value Rankings are considered high-quality or high-value patents.

 

*Note: Patent Quality and Value Rankings do not apply to design patents.
Read more in the Patent Quality and Value Rankings white paper.



Validation

Validating the Patent Quality and Value Rankings 

To continuously track the significance of the correlation between the models and the events they are trying to predict, we built two monitoring systems—one for patent infringement cases to validate value, the other for abandoned USPTO patents to validate quality.

Validating Value Rankings — Patent infringement cases 

We used 11,356 U.S. patents involved in infringement cases in the past 2 years to validate the value model.

While not knowing that these patents are involved in infringement cases, the Patent Value Ranking model rates 78.25% of these patents as those with an above A value ranking, proving the model’s ability to predict potential monetization activities.



Validating Quality Rankings — Abandoned USPTO patent applications

We used 11,356 U.S. patent applications abandoned during prosecution in the past 2 years to validate the quality model.
While not knowing that these applications were abandoned, the Patent Quality Ranking model rates 83.68% of these patents as those with a below C quality ranking, proving the model’s ability to predict potential abandonment and invalidity events.



Read more in our Patent Quality and Value Rankings white paper.