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Internet of Things (IoT) Business & Technology & Patent Integrated Strategy

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IoT Business Insights, Business Models, Samsung/Cisco/Apple/IBM IoT Strategy, Innovation Strategy, New Products/Services Development, Platforms, R&D Insights, Networks (5G), Applications (Smart Home, Connected Car, Smart Healthcare, Smart Grids, Big Date, Fintech), New IoT Products Development, Patent Development Strategy, IoT startup strategy, Implications of Patent Laws to IoT Business

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Internet of Things (IoT) Business & Technology & Patent Integrated Strategy

  1. 1. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com Internet of Things (IoT) Business & Technology& Patent IntegratedStrategy 4Q 2015
  2. 2. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 2 1. IoT Business Reality ………………………………………………………………... 3 2. IoT Business Ecosystem …………………………………………………………... 9 3. IoT Innovation ………………………………………………………………………... 16 4. IoT Business Model ……………………………………………………….………... 22 5. IoT IP-Intensive Startup Strategy …............................……………………... 25 6. IoT Insights from Patents ………………………………………………………... 30 7. IoT Product Innovation Exploiting Patents …………….…………………... 48 8. IoT Patent Landscape…………………………………………….………………... 58 9. IoT Frontiers Insights from Patents …..…..…………….…………….……... 65 10. IoT Patent Strategy …………..…………………..……………….……………... 69 Contents
  3. 3. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 3 1. IoT Business Reality Goldman Sachs defines IoT (Internet of Things) as the third wave of internet revolution: by connecting to the internet billions of devices, IoT opens up a host of new business opportunities and challenges. According to McKinsey, IoT has the potential to create up to $6 trillion economic value annually by 2025. IoT has various applications including, smart home, connected car, smart grid, smart healthcare, smart business and smart city. Many players across diverse industries including semiconductor, consumer electronics, IT, telecommunication, healthcare, retail, industrial & manufacturing and transportation are participated in the IoT business.
  4. 4. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 4 1. IoT Business Reality -2 According to Research and Markets, there are more than 2000 companies that are selling IoT enabled products, playing a vital part in the IoT technology infrastructure, or act as an enabler to the IoT development. A few major companies will not dominate the growth of the IoT market. Rather, virtually all of business ecosystem players will involved in creating and developing the IoT market. The IoT business will be interdisciplinary across many industries. The IoT business will have synergies by the convergence of many different technologies or business attributes. The IoT business can create entirely new industries providing dramatically different values to the customers. Convergence
  5. 5. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 5 1. IoT Business Reality -3 IoT Smart Home & Connected Car Convergence Insights from Patents Patents are a good information resource for obtaining emerging IoT business convergence insights. Followings is an example of the IoT patents that provide insights of potential business convergence between the smart home and connected car (for more patent examples, please consult the linked article). US20120120930 (Vehicle network system interconnecting with a home network; Hyundai Motor Company) illustrates a vehicle network system interconnected with a home network that includes a vehicle information collection unit and a wireless transceiver unit. The vehicle information collection unit detects accident information or management information of a vehicle and the wireless transceiver unit transmits information detected by the vehicle information collection unit to the home network via a wireless communication network and is configured to receive a response signal from the home network.
  6. 6. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 6 1. IoT Business Reality -4 IoT Smart Home & Connected Car Convergence Insights from Patents The home network performs various functions such as providing an image of the inside of a home or a residential area; monitoring and controlling water, electricity, lighting and room temperature; inspecting a door; detecting an arrival of a parcel or a guest; and collecting elevator information. When a predetermined request signal is transmitted from the vehicle network system to the home network, the home network is configured to perform an operation corresponding to the request signal. The home network determines whether the vehicle network system is detected within a predetermined range. The home network may include a RFID system to detect the presence of the vehicle network system. When the vehicle network system is detected within the predetermined range, the home network transmits parking information with respect to the vehicle equipped with the vehicle network. The transmitted parking information can then be displayed on the display unit in the vehicle.
  7. 7. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 7 1. IoT Business Reality -5 IoT Patent Strategy
  8. 8. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 8 1. IoT Business Reality -6 IoT Patent Strategy The development of patents (drafting for new applications, creating value through prosecution and strategic patent portfolio development) regarding the IoT innovation should consider the IoT business reality. Especially, the IoT patent development should support future development of IoT businesses and commercial implementations of IoT innovations. Additionally, the IoT patent development should support for both ecosystem players’ exploitation and customers’ use of the IoT innovation. To take care of the tasks of the IoT patent development in alignment with the IoT business reality, the system approach to the IoT patent can be applied. Then, the system as a whole and each system can be construed to support future development of IoT businesses and commercial implementations of IoT innovations. For details regarding the system approach to the IoT, please consult the linked article .
  9. 9. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 9 2. IoT Business Ecosystem A business ecosystem is the community of business entities that is formed by the competitive and collaborative interactions among business entities for new innovations. A business ecosystem evolves to form a new value network, and thus, to create a new market. The key building blocks of a business ecosystem are the platform providers and value creators. A platform provider develops a platform, which is a collection of core technologies/solutions with open interfaces for interaction with the value creators. A value creator creates values by exploiting the platform. Recently, many global leaders in IoT business provide the IoT platforms to create diverse platform-based business models and form the IoT business ecosystem.
  10. 10. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 10 2. IoT Business Ecosystem -2 IoT Platform According to Research and Markets, there are more than 260 companies that are offering IoT platforms. Some of the IoT platforms are as follows. Samsung Artic platform can help developers create new sensor-enabled devices. Artic platform includes a family of processors and wireless connectivity that can power and connect everything such as servers, smartphones and wearables. Apple HomeKit home automation platform can help developers create new securely connected home automation devices in iOS. HomeKit enables users to discover HomeKit accessories in their home and configure them, or create actions to control the devices. For more IoT platform examples, please consult the linked article.
  11. 11. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 11 2. IoT Business Ecosystem -3 IoT Platform The number of competing IoT platforms is likely to increase for a certain period of time, and then, merge into several dominant IoT platforms through the IoT platform wars, which means the super-competition to form a cluster with value creators at some market positions in the evolved IoT ecosystem. The cluster of a platform will be complex because of participation of diverse ecosystem players across several different industries. Following figure illustrates the clustering of a platform with value creators across the smart home and connected car industry. Smart Home Utility Platform Platform Connected Car Lighting Appliance Environment Security Infortainment Safty Control Automation IoT Ecosystem
  12. 12. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 12 2. IoT Business Ecosystem -4 IoT Ecosystem Patent Strategy The patent strategy for the IoT ecosystem should be in alignment with the evolution of the IoT ecosystems initialed by the dynamic reconstruction of value networks through the IoT platform wars. Most of all, the patent strategy for the IoT ecosystem should support the essential features of the dominant design IoT platforms for the IoT ecosystem: modularity, openness and scalability. • Modularity allows various platform components of core technologies/solutions compatible to the independently developed component technologies/solutions. Thus, the patent strategy regarding patent portfolio development for the component technologies/solutions should include the patent outsourcing through patent acquisitions and M&A processes.
  13. 13. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 13 2. IoT Business Ecosystem -5 IoT Ecosystem Patent Strategy • Openness provides the flexible and transparent interaction interface for the efficient and effective development of value-added applications by the value creators. Thus, the patent strategy should cover the open licensing program. Additionally, the patent strategy should provide the strong protections to the ecosystem collaborators. • Scalability is the application capability across several industries. Thus, the patent strategy for the patent creation, portfolio development and exploitation should take care of the relationship with the IoT ecosystem players across different industries. This means that the strategic patent creation, portfolio development and exploitation should consider not only the traditional Porter’s competition strategy but also the ecosystem alliance strategy across different industries.
  14. 14. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 14 2. IoT Business Ecosystem -6 IoT Ecosystem Patent Strategy Furthermore, the patent strategy should support the value creation by the platform provider itself. Following is an example of the patent strategy that can support the value creation by the platform provider itself by exploiting existing patents. HBS Professor Iansiti, the author of “The Keystone Advantage,” suggested technological assimilation as a new engine for technological innovations in his article “Creative Construction.” In the technological assimilation frameworks, a core innovation that once provided stand-alone products or services for a specific market can be the building blocks for mass market generating innovations through assimilation to broader platforms that were not existed at the time of innovations.
  15. 15. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 15 2. IoT Business Ecosystem -7 IoT Ecosystem Patent Strategy A good example may be the GPS technology providing LBS (location based services) applications for smartphones and automobiles. Another good example may be the DVR technology of TiVo that was integrated into digital set-top box platforms. By contrasting all possible value propositions from a IoT platform to the potential value proposition(s) provided by the inventive departure(s) (novelty point(s)) of the existing patent(s), the integration feasibility of the existing patented technologies into the platform can be found, and thus, the new integrated value propositions can be developed.
  16. 16. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 16 3. IoT Innovation HBS professor Clayton M. Christensen coined the concept of the “disruptive innovation.” Christensen explained the disruptive innovation in his famous book “The Innovator’s Dilemma” as an innovation that disrupts an existing market in ways that the market does not expect, and eventually create a new market. PCs replaced the mainframe computers, 3.5 inch floppy disk drive replaced 5.25 inch drive and digital cameras replaced film cameras are some examples of the disruptive innovation. Key features of the disruptive innovation that differentiate it from the traditional (sustaining) innovation are as follows.
  17. 17. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 17 3. IoT Innovation -2 • The products/services provided by the disruptive innovation underperform demanded by the current mainstream market. Thus, the incumbents in the current market ignore the opportunities provided by the disruptive innovation. The speed of performance improvement of the disruptive innovation is, however, faster than that of the traditional innovation supporting the current market demand. Thus, the products/services provided by the disruptive innovation can serve the future market demand. • The performance of the products/services provided by the disruptive innovation does not need to surpass the performance of the products/services provided by the traditional innovation. The products/services provided by the disruptive innovation will create a new market by either offering comparable performance or meeting the customer’s expectation at lower cost.
  18. 18. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 18 3. IoT Innovation -3 Interconnected IoT devices enable the development of the disruptive products/services by meeting the customer’s expectation at lower cost. For example, a prefabricated house with built-in IoT applications for the smart home can provide the comparable quality of life at lower cost. Interconnected IoT devices also can provide the disruptive products/services by offering comparable performance. For example, the telemedicine system equipped with interconnected low cost medical devices can offer comparable performance of the traditional healthcare system with high cost and high performance medical devices.
  19. 19. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 19 3. IoT Innovation -4 Patent Exploitation One way of exploiting patents for the development of the disruptive IoT products/services is to open patents owned by the incumbents to the business ecosystem collaborators in diverse industries (the “Open IP Innovation”). By letting the collaborators develop the disruptive IoT products/services exploiting incumbents’ patents, the incumbents can keep focusing on the current mainstream market in addition to effectively prepare the emerging market created by the disruptive IoT innovation. Samsung opened its 38,000 patents in various fields including telecom, semiconductor and display to S. Korean SMEs and venture companies as the part of the creative economy innovation center project. Total of 3,000 patents will be provided for free. Samsung will send its patent experts to the center to help exploiting its patents by the selected members of the center. Samsung will need to extend the Open IP Innovation program to its global IoT ecosystem collaborators for developing the disruptive IoT products/services.
  20. 20. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 20 3. IoT Innovation -5 Patent Exploitation A practical method to exploit patents for the development of the disruptive IoT products/services through the Open IP Innovation is to apply the new product/service development methodology in the “Blue Ocean Strategy” (the “Blue Ocean Patent Strategy”; for details, please consult the linked article). The basic principle in the Blue Ocean Patent Strategy is to exploit patents to achieve the value innovation by using the patented technologies to create a new value curve, and thus, to provide new products/services. 0 1 2 3 4 5 6 7 8 9 10 Price Amenities Equipment Instruction Environment Convenience Fun B.O. R.O. Tagline Focus Divergence
  21. 21. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 21 3. IoT Innovation -6 Patent Exploitation Following figure illustrates the basic principle of the blue ocean patent strategy.
  22. 22. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 22 4. IoT Business Model A business model is the way in which a company makes money through its business. The key building blocks of a business model are the value proposition, profit model, and business resource. The key building blocks of business models for the IoT applications can be summarized as follows. A. Business Resource • IoT devices: Devices that can sense/recognize their surrounding environments (including position/movement/identification) and communicate with other devices • Networks: Connecting/communicating medium/infrastructure that can interconnect devices and connect devices to the internet • IT systems: Back-end or embedded systems that can process information (data) obtained by the IoT devices (e.g. cloud computing/big data analytics) and provide the value added services exploiting the information
  23. 23. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 23 4. IoT Business Model -2 B. Value Proposition • Automation: Providing various automation services for the customers’ job to be done (e.g. order the out of stock product automatically; mobile payment; self driving car) • Care: Caring for customers (e.g. monitor customers’ body status and provide various health care services; control customer’s home cooling and heating/ lighting system for energy savings) • Business Intelligence: Providing better working tools/environments (e.g. analyze customers’ shopping behavior for proactive promotion/ advertisement) • Entertainment: Providing fun to customers (e.g. virtual reality games)
  24. 24. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 24 4. IoT Business Model -3 C. Profit Model • Device/IT system sales with value added services • Subscription fees • After-market sales (e.g. part sales) • Third-party sales (e.g. advertisement) Combing the key building blocks, various business models for the IoT applications can be developed.
  25. 25. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 25 5. IoT IP-Intensive Startup Strategy Best Practice: Nest Labs Company information A smart home company headquartered in Palo Alto, California, that manufactures smart thermostats and smoke detectors. Founded in 2010 and acquired by Google for $3.2 billion in 2014. IP value recognition in M&A Build up 132 US issued patents (+ pending applications + international families) in four years Cf. SmartThings’ acquisition by Samsung for $200 million with no patent *notice the value difference: $3.2 billion v. $200 million
  26. 26. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 26 5. IoT IP-Intensive Startup Strategy -2 Strategic development of patent portfolios • Patent fortress for core business Create 33 US issued utility patents and 28 US issued design patents regarding smart thermostat • Strategic patent acquisition Acquired 69 US issued patents and one US patent applications regarding smart sensors and sensor networks. Strategic exploitation of patent portfolios • Strategic financing Utilize 29 US issued patents for patent secured lending from Wells Fargo Bank *after Series A and B funding, before Series C funding Strategic patent licensing Licensed patents for accessing to Intellectual Ventures’ IP for defense
  27. 27. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 27 5. IoT IP-Intensive Startup Strategy -3 IoT Rising Star Insights from Patents Patents can be a good measure regarding the state of the art of the IoT innovation activity in a company. Thus, the IoT patenting activity can be a good indicator for a company to be a leading role in the emerging IoT market. Convida Wireless is a joint venture between InterDigital and Sony America formed in 2013 for driving new IoT innovation in the field of machine-to- machine (M2M) communications and other connectivity technologies. Convida Wireless combines Sony's consumer electronics production expertise with InterDigital's pioneering wireless research for IPR generation. Convida Wireless applied 25 patents in the USPTO as of Aug. 2015.
  28. 28. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 28 5. IoT IP-Intensive Startup Strategy -4 IoT Rising Star Insights from Patents Convida Wireless’ patent applications cover M2M/IoT systems that include devices such as sensors, gateways to other networks and back-end servers. Convida Wireless’ patents also cover M2M/IoT systems’ performances such as devices management, data collection from the devices, data storage and data processing and data querying from users or applications. Recently, Convida Wireless is expanding its patenting activity in the direction of high level IoT architecture. For patents that illustrate some examples of Convida Wireless’ IoT innovation activity, please consult the linked article.
  29. 29. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 29 5. IoT IP-Intensive Startup Strategy -5 IoT Innovative Startups Insights from Patents Smart Home Neura (http://www.theneura.com/) provides the intelligence IoT platform and human-centered smart home application solutions. Neura patent application US20150019714 illustrates the adaptable autonomous smart home system. The adaptable autonomous smart home system can recognize the contextual or semantic profiling of a person or place or devices (physical environment) based on sensed data by the IoT devices. The adaptable autonomous smart home system determines particular interpretation instructions (define particular IoT device control rules) that are associated with the particular physical environment and dynamically updates the control rules for changing physical environment. For other IoT innovative startups, please consult the linked article).
  30. 30. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 30 6. IoT Insights from Patents IoT Service Patents are a good information resource for obtaining the IoT business ideas. Followings is an example of the IoT patents that provide potential business cases based on the IoT smart office building application. For other examples of the IoT patents that provide the IoT services/applications regarding smart utility meter, smart home/building temperature control, smart transportation, connected car, smart manufacturing using 3D printer and smart healthcare, please consult the linked article. US20150230167 (Method and System for Providing Service Based on Space; KAIST) illustrates a system for providing a service based on space. An exemplary service/application scenario is as follows.
  31. 31. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 31 6. IoT Insights from Patents -2 IoT Service User A being identified by an e-mail address of `aaa@abc.com` and User B being identified by an e-mail address of `bbb@def.re.kr` wish to have a meeting in a conference room of Building C on Wednesday at 3:00 p.m. User A may invite User B (by using the identifier `bbb@def.re.kr` of User B) and may reserve Conference Room A313 of Building C through a Calendar service by using the smart phone of User A. Here, Conference Room A313 of building C may be identified by an e-mail address of `CA313@thingsgate.com`, which corresponds to space matching identifier of the respective conference room. And, by inviting the e-mail address `CA313@thingsgate.com` through the Calendar service, Conference Room A313 may be reserved by User A. At this point, management of IoT devices that are included in the space of Conference Room A313 and management of the related services may be carried out by a smart access point belonging to Conference Room A313. In order to allow users to easily use Conference Room A313 in a cooperative environment, such smart access point may be assigned with the above-described e-mail address of `CA313@thingsgate.com`.
  32. 32. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 32 6. IoT Insights from Patents -3 IoT Service As User B arrives in front of Building C, as soon as a Wi-Fi signal of Building C is received by the smart phone of User B, a welcoming message of an access information service (or connection information service) of Building C may be exposed to (or displayed on) the smart phone of User B. If User B responds to such welcoming message, reservation information that has been prearranged through the Calendar service may be notified to the smart phone of User B. User B may then move on to Conference Room A313 by being provided with a Wi-Fi signal based location guidance through the smart phone of User B. And, while User B is moving to Conference Room A313, automatic authentication of all doors located along the path may be realized, thereby allowing User B to pass through all doors in order to reach Conference Room A313 without any separate ID tag.
  33. 33. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 33 6. IoT Insights from Patents -4 IoT Service Smart access points of each individual space may be connected to one another through a smart access point service platform. Accordingly, once User B is authenticated at the entrance of Building C, the corresponding authentication information is shared by all smart access points through the smart access point service platform, thereby reducing the complexity in sequential authentication procedures of the smart access points, which are connected to one another along the movement path of User B. Furthermore, in providing services to User B, service information between the smart access points being sequentially accessed by the smart phone of User B may be shared through the smart access point service platform.
  34. 34. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 34 6. IoT Insights from Patents -5 IoT Service When User B enters Conference Room B, lights and lamps installed in the conference room may be automatically turned on, and operation of a ventilation system may be initiated. Thereafter, when User A enters Conference Room A313, a projector may be turned on, blinders of the conference room windows may be shut, and the lights may be turned off. In addition to such automatic services of the IoT devices, the users may be capable of controlling the specific space by using IoT applications existing within the smart access points of the corresponding space.
  35. 35. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 35 6. IoT Insights from Patents -6 IoT Technology: Connected Cars Patents are a good information resource for obtaining the IoT technology development status. Following patent illustrates current status of the IoT connected car safety/collision avoidance technology development. For other examples of patents that provide current status of the IoT connected car technology development (safety/collision avoidance, traffic information for smart driving, connected car security, infotainment and self-driving car monitoring), please consult the linked article. US 20150054659 (COOPERATIVE VEHICLE COLLISION WARNING SYSTEM; Fujitsu) illustrates a vehicular communication systems enable vehicles to wirelessly communicate with each other to exchange traffic information and generate safety warnings depending on the traffic information exploiting V2X (V2V and V2I) communication system.
  36. 36. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 36 6. IoT Insights from Patents -7 IoT Technology: Connected Cars The vehicular communication system includes a receiver and a transmitter. The receiver may be configured to receive a message relating to traffic conditions along a thoroughfare from a communication node. The transmitter may be communicatively coupled to the receiver and may be configured to rebroadcast the message within a predetermined amount of time after receiving the message. The traffic information communication system may be implemented in a vehicle traveling along the thoroughfare.
  37. 37. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 37 6. IoT Insights from Patents -8 IoT Technology: Smart Healthcare Following patent illustrates current status of the IoT smart health monitoring devices technology development. For other examples of patents that provide current status of the IoT healthcare/medical devices technology development (smart health monitoring devices, smart haptic medical devices, patient movement monitoring devices, healthcare robots and medical kiosk), please consult the linked article. US20150120317 (ADAPTIVE INTERFACE FOR CONTINUOUS MONITORING DEVICES; DexCom) illustrates a glucose sensing device that is capable of measuring the concentration of glucose. The glucose sensing device may be implanted and provides a data that indicative of the concentration of glucose in a host. The data stream may be raw data signal, which is converted into a calibrated and/or filtered data stream used to provide a value of glucose to a host, such as a user, a patient, or a caretaker.
  38. 38. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 38 6. IoT Insights from Patents -9 IoT Technology: Smart Healthcare The data is provided exploiting adaptive reporting process depending on the behavioral and/or contextual status of the host. For example, if a user is driving, it may be desirable to provide a concise report of information that can be comprehended while operating a car. Similarly, if the user is at home watching television, a more robust report may be desirable. Such variations may affect patient behavior and impact utilization of the device and/or outcomes from using the device. The behavioral and/or contextual status of the host can be obtained from the sensed information from various IoT devices and exploiting cloud based data processing.
  39. 39. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 39 6. IoT Insights from Patents -10 IoT Technology: Samsung Following patent illustrates current status of Samsung IoT smart home lighting technology development. For other examples of patents that provide current status of Samsung IoT technology development (energy harvesting sensor device, smart lighting, smart appliance, smart TV and Smart Healthcare), please consult the linked article. US20150115834 (SMART HOME NETWORK APPARATUS AND CONTROL METHOD THEREOF; Samsung) illustrates the network apparatus configured to perform communication with at least one device. The apparatus also includes a storage unit configured to store information for an illumination device located within a preset distance range from a device. The apparatus further includes a controller configured to control a light-emitting state of the illumination device located within the preset distance range from the device based on the information stored in the storage unit when a preset event occurs in the device.
  40. 40. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 40 6. IoT Insights from Patents -11 IoT Technology: Samsung For example, when an event in which a door of a refrigerator is opened over a preset time occurs or has remained open for longer than a present time period, the controller may control the light-emitting state so that a corresponding illumination device flicks at fast speed. When an event in which power of the refrigerator turns off occurs, the controller may control the light-emitting state so that the corresponding illumination device flickers at low speed. Therefore, the user may identify whether a specific event occurs in a device through a device related light-emitting pattern.
  41. 41. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 41 6. IoT Insights from Patents -12 IoT Technology: Cisco Following patent illustrates current status of Cisco IoT smart grid technology development. For other examples of patents that provide current status of Cisco IoT technology development (connected car/ITS (intelligent transportation system), smart grid networks and wireless sensor networks), please consult the linked article. 20150200846 (DATA RATE SELECTION WITH PROACTIVE ROUTING IN SMART GRID NETWORKS; Cisco) illustrates a proactive routing in smart grids networks. In proactive routing, connectivity is discovered and known prior to computing routes to any destination in the network. Other devices in the network can tell the less capable devices exactly where to send the packets, and the less capable devices simply forward the packets as directed.
  42. 42. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 42 6. IoT Insights from Patents -13 IoT Technology: Apple Following patent illustrates current status of Apple IoT smart home technology development. For other examples of patents that provide current status of Apple IoT technology development, please consult the linked article. US20150072674 (Location-Based Device Automation; Apple) illustrates a system for location-based device automation for some smart home applications. Smart home IoT devices (e.g., lights and appliances) associated with a particular geographic location (e.g., room, office, building) can be automated based on a geographic location of mobile devices. Automation of a device can include activating or deactivating the device, or adjusting the settings of the device.
  43. 43. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 43 6. IoT Insights from Patents -14 IoT Technology : Apple For example, home lighting can be configured to activate or deactivate depending on a day and time. Automation modes (e.g., a home mode, an away mode, or a vacation mode) can be used to adjust automation settings for the devices. A particular automation mode can be selected to automate (e.g., adjust the settings) the devices using the configured automation settings for the particular automation mode. An automation setting can indicate a particular setting for the particular device (e.g., a thermostat setting, a volume level, or a light dimming setting). Automation modes can be personalized using the user profiles associated with the mobile device at the specific geographic location to provide the personalized entertainment.
  44. 44. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 44 6. IoT Insights from Patents -15 IoT Technology: Big Data IoT big data analytics is becoming important to process unimaginably large amounts of information and data that are obtained by the sensor embedded interconnected IoT devices. The typical IoT big data analytics is Hadoop, an open-source software framework that supports data-intensive distributed applications, and the running of applications on large clusters of commodity hardware. Hadoop, that is based on the architectural framework MapReduce, collects both structured data and unstructured data, processes the collected data set in a distributed network cluster in parallel, and extracts valuable information from the processed data set within a short time. Followings illustrate an example of patents that provide current status of the IoT big data analytics technology development. For other examples of patents that provide current status of IoT big data analytics technology development, please consult the linked article.
  45. 45. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 45 6. IoT Insights from Patents -16 IoT Technology: Big Data US20140297826 (SYSTEM AND METHOD FOR BIG DATA AGGREGATION IN SENSOR NETWORK; ETRI) illustrates a system for big data aggregation in a sensor network. The most important part of the IoT big data analytics is collecting data before storing the data, and many data collection tools based on Hadoop supports collecting data in Hadoop Distributed File System (HDFS). HDFS is an open source for storing big data dispersedly, that is, a technology for storing collected data reliably. The big data aggregation system includes a sensor network which comprises many sensor nodes connected to each other over a wired/wireless network and is configured to transfer sensor data generated by each of sensor nodes to a big data management unit by setting a destination address in the sensor data as an address of a big data management unit. The big data management unit configured to distribute and dispersedly store the sensor data based on the set destination address of the sensor data.
  46. 46. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 46 6. IoT Insights from Patents -17 IoT Technology: 5G 5G (the fifth generation mobile communications) is scheduled to launch in around early 2020s. Even if it is not determined yet regarding the standard technology details, many researchers expect that 5G will transfer 1000 times more data, and thus, can connect billions of IoT (Internet of Things) devices at the same time. Key candidate technologies that enable 5G to support IoT devices connection are millimeter wave communication, massive MIMO (multiple input and multiple output) technology, cloud RAN/network function virtualization (NFV)/ software defined network (SDN), ultra dense network (UDN) and low latency network. For patents illustrate some examples of the current key technology developments of 5G for IoT, please consult the linked article.
  47. 47. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 47 6. IoT Insights from Patents -18 IoT Technology: FinTech FinTech (Financial Technology) refers to exploiting technologies (e.g. mobile devices, internet/web technologies) for providing innovative financial services. Some examples of FinTech are money transfer/digital currency, payments/ billing system and P2P lending/cloud funding system. The service developments of FinTech can be protected by either software patents or business method patents. The internet connected IoT devices combined with FinTech can provide diverse value added financial services. Some examples are secured smart transactions, smart POS systems and personalized banking service. For patents illustrate some examples of the technology/service developments of IoT/FinTech, please consult the linked article.
  48. 48. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 48 7. IoT Product Innovation Exploiting Patents • Patent information provides many valuable insights that can be exploited for developing new innovative IoT products. Most of all, patents can provide insights regarding the state of the art of IoT innovation for a specific technology/application field (e.g., Healthcare/Medical Devices, Connected Cars, Big Data Analytics, Security, Cloud, Smart City) and a company (e.g., Apple, Samsung, Cisco, IBM, Qualcomm). • From the “AS IS” analysis based on the insights regarding the state of the art of IoT innovation, one can develop the “TO BE” strategy for the future technologies of new IoT products (e.g., technology roadmap in alignment with new product development goals) for a specific technology/application field and in consideration of competitors’ product innovation direction.
  49. 49. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 49 7. IoT Product Innovation Exploiting Patents -2 • Patents can provide insights regarding technical details of IoT innovation (e.g., Smart UI/UX, Autonomous Vehicles). Thus, patent information combined with future technology development roadmap can provide insight regarding the future implementation of a specific IoT technology. • Patents can provide insights regarding the comparative innovation strategy in alignment with the strategic move of a specific company for the IoT business leadership through the cross-competitor analysis. • For example, to compare the innovation strategy of the three leading companies in the IoT Smart Home applications, Apple, Google and Samsung, patent information is exploited for the cross-competitor analysis. To obtain the strategic parameters of the cross-competitor analysis for the IoT Smart Home exploiting patents, a system approach to the IoT patents is adopted.
  50. 50. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 50 7. IoT Product Innovation Exploiting Patents -3 • The analysis shows Google’s select and focus strategy for providing the care value proposition. The analysis also show that Apple is most active in the innovation of automation value proposition compare to Samsung and Google, even if Apple’s number of patent applications is smaller than that of Google and Samsung. • Patents can provide insights regarding a new company to become play a leading role in the emerging IoT market. Thus, patent information can be exploited for the product differentiation strategy.
  51. 51. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 51 7. IoT Product Innovation Exploiting Patents -4 • Patents can be exploited to identify new IoT product development opportunity from scenarios analysis. The scenarios analysis can show potential interactions between the future user and the IoT product via the specific usage of the product and behavior of the user under environments provided by the product functionality. • The scenarios analysis exploiting patent information can provide the new IoT product concept (e.g., specific benefits to the user, product design, product functionality and the technology for the product). • Patents can be exploited to develop the disruptive IoT products by providing IoT products with new performance/value proposition attributes that may not previously have been valued by existing end users (e.g., convergence with other technologies to create synergies).
  52. 52. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 52 7. IoT Product Innovation Exploiting Patents -5 IoT Smart Home Scenarios for New Product Development Exploiting Patents • The first step in the scenario development is to do patent search and review for the state of the art of IoT innovation for smart home applications. The searched patents that are related to the smart home applications should be analyzed to find the measurable user benefits provided by the value propositions (automation, energy management, care, safety, entertainment) and method/device/system to offer the value propositions. • Then, develop a story of the future implementations of the state of the art of IoT innovation for smart home applications exploiting 5W1H – Who, When, Where, What, Why, How.
  53. 53. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 53 7. IoT Product Innovation Exploiting Patents -6 IoT Smart Home Scenarios for New Product Development Exploiting Patents • The stakeholders (users) in the scenario for the IoT smart home are usually the member of home who can be specified by age, gender, profession. The time can be the morning, afternoon, evening. The place can be the bedroom, living room, bathroom, kitchen and outside. • Then, describe how the specific product (including system) that is implemented based on the patent disclosures performs (interacts with a user) to provide each value proposition under the circumstances for a specific purpose (expectations of the product’s future user or solutions for product’s future user’s problems). Base on the developed scenarios, potential improvements over the implemented product can be devised by listing new product features, functionality, UI/UX, integration method etc.
  54. 54. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 54 7. IoT Product Innovation Exploiting Patents -7 IoT Smart Home Scenarios for New Product Development Exploiting Patents • Followings summarize the key elements of the IoT smart home scenarios for each value proposition. • Home Automation The smart home product should determine how to solve user’s problem or perform for a specific situation without constant guidance from the user. The smart home product should adapt to changing situation/environment. The smart home product should react properly to the changing situation/environment in accordance with the performance objectives. The smart home product should join the home networks without user’s manual configuration.
  55. 55. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 55 7. IoT Product Innovation Exploiting Patents -8 IoT Smart Home Scenarios for New Product Development Exploiting Patents • Home Energy Management The smart home product should adapt the overall energy efficiency of the home to the comfort and quality of life. The smart home product should control the home heating for reducing energy consumption while ensuring comfort. The smart home product should control lighting based on user’s presence and environment. • Home Care The smart home product should proactively act for caring the user under the environment/situation on behalf of the user. The smart home product should provide UI/UX depend on the user context.
  56. 56. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 56 7. IoT Product Innovation Exploiting Patents -9 IoT Smart Home Scenarios for New Product Development Exploiting Patents • Home Safety The smart home product should provide private space protection and control against hazard home environment. The smart home product should measure of gas, carbon monoxide, fire, smoke, water and weather conditions. The smart home product should provide remote access to home environment. • Home Entertainment The smart home product should provide personalize entertainment to the user. The smart home product should exploit semantic information regarding the home entertainment devices.
  57. 57. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 57 7. IoT Product Innovation Exploiting Patents - 10 IoT Killer Applications Design Rules Insights from Patents • Rule 1: Interoperable Networking of the IoT Devices • Rule 2: Best IoT Sensor Selection for Collecting Characteristic Information of the Environment • Rule 3: Semantic Reasoning of the Data from the IoT Devices • Rule 4: Collective Interaction of the IoT Devices • Rule 5: Best UI Selection for Users • Rule 6: Adaptable Autonomous System for Users • Rule 7: Maximum Exploitation of Back-End Systems (Cloud, Big Data Analytics) • Rule 8: Security Architectures for Maximum Security Measures • Rule 9: Exploration of Cross-Industry Applications • Rule 10: User Experiences (UXs) for Maximum User Satisfaction For details, please consult the linked article.
  58. 58. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 58 8. IoT Patent Landscape Smart Home Many high tech business leaders are now competing in the IoT smart home market by providing innovative products/services such as Samsung SmartThings and Apple HomeKit. Patent information can provide insights regarding the state of the art of the IoT innovations for smart home applications (home automation, energy/utility management, home security, lighting system). To find the leading innovators in the IoT smart home applications, more than 1000 published patent applications and issued patents in the USPTO as of Oct. 30, 2015 that are related to the smart home applications are reviewed. More than 400 patent applications are selected as the key patents for the IoT smart home applications. In number of patent applications, Google (including Nest Lab) is the leader followed by Samsung Electronics, General Electric, LG Electronics, Allure Energy and Honeywell. For details, please consult the linked article.
  59. 59. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 59 8. IoT Patent Landscape -2 Smart Home
  60. 60. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 60 8. IoT Patent Landscape -3 Connected Cars Patent information can provide insights regarding the state of the art of the connected cars innovations. To find the leading innovators in the connected cars, more than 1000 published patent applications and issued patents in the USPTO as of Oct. 30, 2015 that are related to the connected cars are reviewed. More than 600 patent applications are selected as the key patents for the connected cars. In number of patent applications, Nissan is the leader followed b AutoConnect Holdings, Toyota, Ford, GM, Omega Patents, American Vehicular Sciences and Honda. For details, please consult the linked article.
  61. 61. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 61 8. IoT Patent Landscape -4 Connected Cars
  62. 62. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 62 8. IoT Patent Landscape -5 IoT Platform Connectivity To find the leading innovators in the IoT platform connectivity, more than 5000 issued patents in the USPTO as of 3Q 2015 that are related to the IoT platform connectivity (LTE, WLAN, Zigbee, Bluetooth, Bluetooth Low Energy) are reviewed. More than 2800 patents are selected as the key patents for the IoT platform connectivity. In number of patents, Samsung Electronics is the leader followed by Qualcomm, LG Electronics, Google, Intel, Nokia, Ericsson, InterDigital, Apple, BlackBerry, Texas Instruments, Marvell, Avago Technologies (Broadcom), Sony and Panasonic. For details, please consult the linked article.
  63. 63. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 63 8. IoT Patent Landscape -6 IoT Platform Connectivity
  64. 64. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 64 8. IoT Patent Landscape -7 IoT Connected Healthcare Patent Landscape & Disputes Risk Assessment: https://www.linkedin.com/pulse/iot-connected-healthcare-patent-landscape- disputes-alex-g-?published=t Personal Health/Fitness Care Devices Patent Landscape: https://www.linkedin.com/pulse/personal-healthfitness-care-devices-patent- landscape-alex-g-?published=u IoT M2M Connectivity Insights from Patents: https://www.linkedin.com/pulse/iot-m2m-connectivity-insights-from- patents-lee-ph-d-j-d-clp?published=t Health Monitoring Biomedical Sensing Devices Insights from Patents: https://www.linkedin.com/pulse/health-monitoring-biomedical-sensing-devices- insights-alex-g-?published=t
  65. 65. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 65 9. IoT Frontiers Insights from Patents IoT SaaS Cloud based software as a service (SaaS) enables cost effective value added services for many Internet of Things (IoT) applications such as smart home, connected healthcare and preventive maintenance of industrial equipment. Samsung patent application US20130227569 illustrates the system that can gather data from thousands of the IoT sensors/devices and analyze the data without the massive amount of investment in the server and big data analytics infrastructure. Oracle patent application US20150227118 illustrates the cloud based IoT SaaS system for facilitating automatic control of the smart home devices based on past device behavior, current device events, sensor data, and/or server-sourced data. For details, please consult the linked article.
  66. 66. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 66 9. IoT Frontiers Insights from Patents -2 Self-aware Self-healing IoT Billions of interconnected devices that are connected to the internet should be self-aware and self-healing: Self-Aware Self-Healing Internet of Things (IoT) is concerned with systems that can auto-detect, analyze, and fix any issue with the IoT devices and networks without human intervention. Deployment of significant numbers of lighting devices with associated controllers and/or sensors and networking in smart cities presents increasing challenges for set-up and management of the system elements and network communication elements of the lighting system. US20150250042 illustrates the system of networked intelligent lighting devices that provides autonomous discovery and set-up at installation. The system also can provide autonomous detection of failure and fix of the failure. For details, please consult the linked article.
  67. 67. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 67 9. IoT Frontiers Insights from Patents -3 Deep Learning Deep learning is a machine learning method that attempts to learn layered models of inputs that mimics the human brain’s reasoning process. The layers correspond to distinct levels of concepts where higher-level concepts are derived from lower-level concepts (hierarchy of complex concepts that are constructed out of simpler concepts). US20150294422 illustrates the deep learning application for dynamic risk management in the IoT connected cars. The deep learning correlates the driver's usage patterns, driving styles, weather conditions, traffic or interaction with the vehicle based on a priori knowledge of how normalized driver data sets behave to predict potential driving risk dynamically. Real time data are provided using the vehicle-to-infrastructure (V2I) and vehicle-to-vehicle (V2V) communications. For details, please consult the linked article.
  68. 68. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 68 9. IoT Frontiers Insights from Patents -4 Robots for Smart Home Have you ever dreamed about future that your favorite food is ready automatically when you feel hungry? US20150290795 indicates a possibility by combing robotics and artificial intelligence. US20150290795 illustrates the computerized robotic food preparation system for food preparation by digitizing the food preparation process of professional and non-professional chef dishes and subsequently replicating a chef's cooking movements, processes and techniques with real-time electronic adjustments. US20140207282 illustrates a household robot that can take care of your home. The household robot can monitor the state of a home, clean the home and turn on/off various appliances for you automatically and transmit the surveillance data to you in an emergency condition detected by the robot. As illustrated in US20150224640 the household robot even can take care of your health. For details, please consult the linked article.
  69. 69. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 69 10. IoT Patent Strategy Preparation & Prosecution Strategy Prior Arts Search Even if the internet of things (IoT) gets a huge attention recently, the concept of interconnected devices and connecting billions of devices to the internet in the IoT is not new and has been researched for over 10 years. Thus, a large number of non-patent prior arts including research papers and books can be existed. Therefore, the intensive search of non-patent prior arts is needed for preparing the IoT patent. US20150019710 illustrates a good example case that intensive search of non-patent prior arts is required. US20150019710 claims a method of maintaining interoperability amongst IoT devices connected via an IoT integration platform. The key elements of the claim 1 at issue are the interoperable control rule based on the semantic label associated with a user's IoT device.
  70. 70. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 70 10. IoT Patent Strategy -2 Preparation & Prosecution Strategy Prior Arts Search -2 The USPTO rejected the claim 1 under the AIA 102(b) as being anticipated by a non-patent prior art regarding the semantic interoperability on the web. Semantic interoperability enables exchange of data among different web system. The inventor argued that the semantic label in the non-patent prior associated with a user's IoT device and amended claim to clarify the distinguished aspects of the claim form the prior art. However, the USPTO rejected the claim again in the final rejection based on newly founded non-patent prior art that explicitly mentions the IoT device in the disclosure.
  71. 71. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 71 10. IoT Patent Strategy -3 Preparation & Prosecution Strategy Claim Drafting for Maximum Quality & Value When the IoT patent claims are drafted, several factors that can make the patent high quality and value should be considered. The factors are (1) claim scope and broadness, (2) value propositions of a claim’s novelty point (non-obvious inventive departure from the prior arts), (3) claim mix (degree to which different kind of statutory claim types (e.g. apparatus, process, manufactures, composition) are used in a patent), (4) claim diversity (degree to which different kind of claim formats (e.g. means-plus-function claim), terminology, arrangement in a given statutory claim type (e.g. number or order of claim elements) are used In a patent) and (5) claim setting (degree to which different kind of commercially significant settings (e.g. component/system or transmitter/receiver) are used in a patent).
  72. 72. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 72 10. IoT Patent Strategy -4 Preparation & Prosecution Strategy Claim Drafting for Maximum Quality & Value -2 The features to be considered in the claim drafting to get the high quality and value patents with the optimal quality to cost (efforts and time in addition to monetary cost) ratio can be decided exploiting the insights for products/services that is going to be covered by the patent (e.g. attributes of a product/service that valued most by customers), the patent landscape to figure out the competitors’ patents (e.g. whether design around is required to avoid infringing competitors’ patents) and internal patenting process (including available patent budget). For example, if a patent is going to use for excluding the competitors, the key features to be considered in the claim drafting will be the claim diversity (to avoid potential infringement loophole) and claim mix (to provide protection against invalidation).
  73. 73. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 73 10. IoT Patent Strategy -5 Preparation & Prosecution Strategy Claim Drafting for Maximum Quality & Value -3 The best practice in the IoT patent claims drafting is the Qualcomm patents for the IoT connectivity. Total of 273 patents issued in the USPTO for the IoT connectivity are reviewed. Following table summarizes the assessment.
  74. 74. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 74 10. IoT Patent Strategy -6 Preparation & Prosecution Strategy Claim Drafting & Amendment under Post-Alice 101 Eligibility Test The basic building blocks of the IoT are devices that can sense/recognize their surrounding environments and communicate with other devices, connecting/ communicating network medium/infrastructure that can interconnect devices and connect devices to the internet, back-end IT systems that can process information (data) obtained by the IoT devices (e.g. cloud computing/big data analytics) and provide the value added services exploiting the information. Therefore, a part or whole of data aggregation, data transfer, data correlation, data analysis and services based on the data are the essential elements of the IoT inventions, and thus, the elements of the IoT patent claims. Consequently, many of IoT patents can be identified as abstract ideas because they are the certain methods of organizing human activities/mental process or fundamental economic practices or mathematical relationships/formulas unless the IoT patent claims are drafted carefully to pass the post-Alice 101 patent eligibility test.
  75. 75. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 75 10. IoT Patent Strategy -7 Preparation & Prosecution Strategy Claim Drafting & Amendment under Post-Alice 101 Eligibility Test -2 For example, claim 1 in US20140012945 claimed: A method of automatically detecting issues and facilitating the transmission of alert messages in a home network consisting of a plurality of consumer electronic devices coupled to a service node, the method comprising: storing information regarding home entities in an inventory database, the entities comprising the household, one or more users within the household, devices in the household, applications running on the devices, and a community of which the household is included; defining usage classes for each entity, the usage classes denoting a primary function associated with an entity, and comprising networking, productivity, and entertainment; assigning an index value to each usage class for each entity, the index value comprising an integer value within a fixed range, and reflecting a relative level of satisfaction associated with the entity for each respective usage class; monitoring data regarding usage trends, performance characteristics, and external variables associated with the entities;
  76. 76. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 76 10. IoT Patent Strategy -8 Preparation & Prosecution Strategy Claim Drafting & Amendment under Post-Alice 101 Eligibility Test -3 modifying one or more of the index values based on the monitored data; and facilitating the transmission of messages regarding services or products related to the entities of the home from one or more parties, wherein the messages are conformed to index values. This claim was rejected under 101 by the USPTO because the claim is directed towards the abstract idea: storing data regarding entities, classifying entities, assigning index values, monitoring usage data, modifying the index values and transmitting messages regarding services or products related to the entities based on index values. Thus, simply transferring the data through the networks or processed the data for providing services will not sufficient to transform the nature of the claimed invention into a patent-eligible claim. Additional elements that are sufficient to amount to significantly more than the abstract idea are needed.
  77. 77. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 77 10. IoT Patent Strategy -9 Preparation & Prosecution Strategy Claim Drafting & Amendment under Post-Alice 101 Eligibility Test -4 Potential claim elements that can overcome the reject may be the claim elements that embed/link to a specific machine/article (not a generic purpose computer) (e.g. medical device, thermostat, application specific microprocessor/controller) or that either recite a specific series of steps that resulted in a departure from a human activity or transform a particular thing to a different thing or improve the technology. For details, please consult the linked article.
  78. 78. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 78 10. IoT Patent Strategy -10 Preparation & Prosecution Strategy Patent Disclosure Drafting & Prosecution in Alignment with Business Strategy The IoT patents should support future development of the IoT businesses and commercial implementations of the IoT innovations. The disclosures of the IoT patent can be considered as a system that is consist of the basic building blocks of the IoT as a subsystem: (1) devices that can sense/recognize their surrounding environments and communicate with other devices, (2) connecting /communicating network medium/infrastructure that can interconnect devices and connect devices to the internet, (3) back-end IT systems that can process information (data) obtained by the IoT devices (e.g. cloud computing/big data analytics) and (4) provide the value added services exploiting the information. Then, the system as a whole and each basic building block as a subsystem can be construed in the disclosures to support future development of IoT businesses and commercial implementations of the IoT innovations.
  79. 79. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 79 10. IoT Patent Strategy -11 Strategic Patent development Best Practices Case Study IoT Smart Home Strategic Patent Development Best Practice: https://www.linkedin.com/pulse/internet-things-iot-strategic-patent-development- best-alex-g-?published=t IoT Connected Cars Strategic Patent Development Best Practice: https://www.linkedin.com/pulse/iot-connected-car-patent-development-best- practice-alex-g-?published=t IoT Connected Healthcare Strategic Patent Development Best Practice: https://www.linkedin.com/pulse/iot-connected-healthcare-strategic-patent- development-alex-g-?published=t
  80. 80. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 80 10. IoT Patent Strategy -12 Patent Disputes Risk Assessment As the smartphone market matured, many companies are looking for the post- smartphone market that can generate new revenues. Many market researchers expect that the interconnected IoT (Internet of Things) devices will create a new market that will result in more than $1 trillion in value added to the global economy within 10 years. In the short term, wearable computing devices are expected to form an early IoT market by interconnecting body-sensing devices and providing useful personal services including healthcare. As we have seen in the smartphone market development, it is expected that the super-competition to preoccupy the leadership in the lucrative IoT market can lead to another round of patent wars. The post-smartphone patent wars, however, will be more extensive because of more extensive participation of players across several different industries. The post-smartphone patent wars will also be more complex because of the recent rapid change in legal environment and the learning curve from the smartphone patent wars.
  81. 81. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 81 10. IoT Patent Strategy -13 Patent Disputes Risk Assessment To assess the potential patent disputes risk of the IoT, patent landscapes of three major IoT applications – smart home, connected cars, smart healthcare (including healthcare/fitness wearable devices) – and IoT platform connectivity are researched. Followings summarize the potential patent disputes risk for each subfield of the IoT.
  82. 82. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 82 10. IoT Patent Strategy -14 Patent Disputes Risk Assessment Smart Home One interesting point in the smart home patent land scape is a large number of patents owned by two startups - Allure Energy (9 %) and Ecofactor (5 %) - that are not successful in the IoT smart home market compare to their marker leader competitors such as Nest Lab and Ecobee. A large number of patents owned by commercially unsuccessful companies can be the potential patent disputes risk to the smart home companies.
  83. 83. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 83 10. IoT Patent Strategy -15 Patent Disputes Risk Assessment Smart Home -2 Allure Energy is a smart home energy management company based in Austin, Texas. Allure Energy develops leading-edge smart energy management solutions for many IoT applications. Allure Energy has developed 22 US family patents for the smart energy management up to now. Significant number of forward citations shows the high quality of the family patents. Especially, many patents of most key industry players including Google (Nest Lab), GE and Honeywell in the smart energy management heavily cited Allure Energy patents. A huge number of claims of the family patents make it very difficult to invalidate the family patents through PTAB IPR process. Allure Energy already sued Honeywell in Texas Western District Court (Case No. 1:15-cv-00079; January 29, 2015) and Nest Lab in Texas Eastern District Court (Case No. 9:13-cv-00102; May 14, 2013).
  84. 84. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 84 10. IoT Patent Strategy -16 Patent Disputes Risk Assessment Connected Cars One interesting point of the connected cars patent landscape is the large number of patents owned by two active patent monetizing entities - Omega Patents and American Vehicular Sciences and a suspected entity - AutoConnect Holdings. The large number of patents owned by the patent monetizing entities is a potential patent disputes risk for the connected cars industry. Omega Patents and American Vehicular Sciences have involved in 15 and 52 patent litigations respectively. American Vehicular Sciences is a subsidiary of Acacia Research. Flextronics AP LLC, which is a strategic patent development subsidiary of a connected vehicle platform solution company Flextronics International, transferred the ownership of patents to AutoConnect Holdings.
  85. 85. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 85 10. IoT Patent Strategy -17 Patent Disputes Risk Assessment For the patent disputes risk assessment of the Smart Connected Healthcare and IoT Platform Connectivity, please consult the linked article.
  86. 86. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 86 10. IoT Patent Strategy -18 IoT Smart Home Innovation R&D White Space Many high tech business leaders are now competing in the IoT (Internet of Things) smart home market by providing innovative products/services such as Samsung SmartThings and Apple HomeKit. Patent information can provide insights regarding the state of the art of the IoT innovations for smart home applications such as home automation, energy/utility management, home security, lighting system and safety monitoring (e.g., hazard detecting, elderly care). Thus, one can identify the potential further innovation R&D areas (“white space”) that can lead to new products/services development through the patent analysis.
  87. 87. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 87 10. IoT Patent Strategy -19 IoT Smart Home Innovation R&D White Space -2 To find the white spaces in the IoT smart home applications, more than 1000 published patent applications and issued patents in the USPTO as of November 10, 2015 that are related to the smart home applications are reviewed. More 400 patent applications are selected as the key patents for the IoT smart home applications. In number of patent applications, Google (including Nest Lab) and Samsung Electronics dominate the patent applications (nearly 30% of the total patent applications among more than 70 patent owners). Samsung Electronics patent application is highly focused on the home automation. Google patent application is focused on the home automation energy/utility management and safety monitoring.
  88. 88. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 88 10. IoT Patent Strategy -20 IoT Smart Home Innovation R&D White Space -3
  89. 89. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 89 10. IoT Patent Strategy -21 IoT Smart Home Innovation R&D White Space -4 Following figure shows the patent landscape of the IoT smart home applications. As can be seen in the figure, the home automation is clouded by significant number of patent applications owned by many market leaders such as Samsung Electronics, LG Electronics and General Electric. The energy/utility management is also clouded by a large number of patent applications owned by several key market leaders such as Google and Honeywell.
  90. 90. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 90 10. IoT Patent Strategy -22 IoT Smart Home Innovation R&D White Space -5
  91. 91. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 91 10. IoT Patent Strategy -23 IoT Smart Home Innovation R&D White Space -6 In-depth analysis of each patent reviles that most of the patent applications are for the incremental innovations of the current market products/services. 13% of the total patent applications are for the innovations of the potential new market products/services: Adaptable Autonomous Smart Home System (The adaptable autonomous smart home system can recognize the contextual or semantic profiling of a person or place or devices (physical environment) based on sensed data by the IoT devices. The adaptable autonomous smart home system determines particular interpretation instructions (define particular IoT device control rules) that are associated with the particular physical environment and dynamically updates the control rules for changing physical environment); Self-Aware Self-Healing Smart Home System; Artificial Intelligence including Deep Learning Applications; Cloud/Big Data/SaaS; Robots; New UX for Smart Home System; Cross-industry Convergence; and Emotion-Aware Smart Home System.
  92. 92. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 92 10. IoT Patent Strategy -24 IoT Smart Home Innovation R&D White Space -7
  93. 93. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 93 10. IoT Patent Strategy -25 IoT Strategic Patent R&D Strategic Patent Portfolio Development Exploiting Existing Patents Well tailored value creation methodology combined with patent prosecution strategy can develop new patent portfolios for maximum ROI from existing patents. Many patent applications and newly issued patents can be further developed for creating new values by amending and creating claims and generating family patents to encompass emerging technology and products/ services trends, market demands, and strategic exploitation goals (e.g., cross-licensing, monetization etc.).
  94. 94. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 94 10. IoT Patent Strategy -26 IoT Strategic Patent R&D -2 Goldman Sachs defines IoT (internet of things) as the third wave of internet revolution: by connecting to the internet billions of devices, IoT opens up a host of new business opportunities and challenges. Even if IoT gets a huge attention recently, the concept of interconnected devices and connecting billions of devices to the internet in the IoT is not new and has been researched for over 10 years. Thus, there may be a large number of patents (that were not intended for specific IoT application at the time of invention) that can be exploited for developing new IoT patents supporting current and future IoT business goals.
  95. 95. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 95 10. IoT Patent Strategy -27 IoT Strategic Patent R&D -3 New Patent Development Opportunity Case Study Mitsubishi Electric Research Laboratories (MERL) is the North American arm of the corporate R&D organization of the Mitsubishi Electric Corporation. MERL conducts application motivated basic research and advanced development. Total of 168 MERL patents filed within 3 years are reviewed for finding new IoT patents development opportunities. Many patent applications in the field of Wireless & Optical Communications (IoT Connectivity), Power Distribution System (Smart Grids), Vehicle Control/ Information System (Connected Cars), Electronic Devices (IoT Sensors) and Building Automation (Smart Home) are found to be the good candidates for new IoT patents development.
  96. 96. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 96 10. IoT Patent Strategy -28 IoT Strategic Patent R&D -4
  97. 97. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 97 10. IoT Patent Strategy -29 IoT Strategic Patent R&D -5 Strategic Patent Development for New Products/Services One can identify new patent R&D areas (“white space”) that can lead to new products/services development through the patent landscape analysis. Specific patent R&D subject matters that can cover the new IoT products/services further can be found from scenarios analysis. The scenarios analysis can show potential interactions between the potential users and the new IoT products/services via the specific usage of the products/services and behavior of the user under environments provided by the products functionality/services offerings. Thus, the scenarios analysis can provide the specific patent R&D subject matters that cover the new IoT products/services concepts (e.g., specific benefits to the user, products/services design, and the technology for the products/services).
  98. 98. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 98 10. IoT Patent Strategy -30 IoT Strategic Patent R&D -6 New Patent Development Opportunity Case Study Philip Morris International is an American global cigarette and tobacco company. Philip Morris International wanted to develop new electronic cigarettes that can reduce the disease and death caused by tobacco significantly. Patent landscape analysis regarding the electronic cigarettes reviled that it is hard to find white space in the traditional electronic cigarette R&D areas. Specific patent R&D subject matters that can cover the new electronic cigarettes were found based on the scenarios analysis: Smart electronic cigarettes exploiting the IoT applications.
  99. 99. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 99 10. IoT Patent Strategy -31 IoT Patent Monetization New Business Model Even if the IoT gets a huge attention recently, the concept of interconnected devices and connecting billions of devices to the internet in the IoT is not new and has been researched for over 10 years. Thus, there may be a large number of patents (that were not intended for specific IoT application at the time of invention) that can be exploited for developing new IoT business by forming the strategically packaged patent portfolio for providing the new IoT value propositions. The strategically packaged patent portfolio is the collection of the existing patents that can be exploited for developing new products/services (and thus, new business) by integrating the value propositions of each patent of the portfolio. The strategically packaged patent portfolio can be used for monetization through patent sale, patent licensing, commercialization, spin-off, patent banking, and financing.
  100. 100. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 10 References Collection of IoT Articles: https://www.linkedin.com/today/author/2853055
  101. 101. ©2015 TechIPm, LLC All Rights Reserved www.techipm.com 10 Thank you! If you have any questions please contact Alex G. Lee at alexglee@techipm.com Techipm IoT Strategy Consulting Service Link

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