The market reveals a lot about the business world. It gives key indications on which areas to pursue, which areas to avoid, who may be interested in buying or selling, and so much more. Therefore, using market-derived patent data can help companies outperform their competitors and make wise business decisions.
As already mentioned, market-derived patent data can reveal a lot of information that can help businesses make good decisions. Paying particular attention to market-derived patent data is a good idea for a variety of reasons.
1. Innovations. Key innovations typically rely on patents. For instance, pharmaceutical companies rely heavily on patents. In fact, the most valuable patent in history was for Pfizer’s cholesterol-reducing drug Lipitor. History also indicates when patents expire in the pharmaceutical industry, revenue and market position drop considerably. As a result, companies have to make up for patent losses in a variety of other ways (e.g., introducing new drugs, decreasing workforce, and others). Learning about patents active in the market gives key indication on the types of innovation entering the market and holding most interest.
2. Available information. Market-derived patent data is publicly available. Because market-derived data is within reach and reveals so much about market opportunities, businesses that take advantage of such information are better armed to make quick business decisions and adjustments than those that guess or go blindly into the market. While most businesses do their homework before entering the market, keeping up with the market can help businesses stay on track.
3. Authoritative data. In the United States, patent data is published by the government via the USPTO. The government requires that applicants follow specific USPTO protocol. Therefore, data is trustworthy and follows specific standards that make it consistent and valid.
4. Data trends. By analyzing market-derived patent data, businesses can understand a variety of trends that help provide strategic direction. For instance, a decrease in patent grants for a given patent class indicates that interest may be waning. Focusing on patent classes with more interest may prove more beneficial, yet can also be more competitive.
As you can see, there are good reasons to consider market-derived patent data. Analyzing this data can help businesses determine the appropriate path for success. They can decide whether to pursue a particular innovation based on market interest or redirect their ideas based on the market’s lack of interest. They can use this data to predict future market acceptance and learn what their competitors are pursuing. They can make many decisions based on market activity.