Internet of Things (IoT) Strategic Patent Monetization 4Q 2015

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©2015 TechIPm, LLC All Rights Reserved http://www.techipm.com/
Internet of Things (IoT) Strategic Patent Monetization 4Q 2015
Alex G. Lee (alexglee@techipm.com)
https://www.linkedin.com/today/author/2853055
Contents:
1. Monetization Exploiting Strategically Packaged Patent Portfolio
2. Development of Strategically Packaged Patent Portfolio Best Practice
3. Methodology for Developing Strategically Packaged Patent Portfolio

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1. MonetizationExploiting StrategicallyPackagedPatentPortfolio
Goldman Sachs defines the IoT as the third wave of internet revolution: By connecting billions of devices to the
internet, the IoT can open up a host of new business opportunities and challenges. Even though the IoT is getting a
huge attention recently the conceptof interconnected billions of devices is not new and has been under
development for over 10 years. Thus, there may be a large number of related patented technologies that can be
exploited for developing new products/services, and thus, new business for the emerging IoT market.
A strategically packaged patent portfolio is the collection of patents that the integrated value propositions of each
patent of the portfolio target specific value propositions that are provided by emerging new products/services. The
strategically packaged patent portfolio can be used for monetization through patent sale, patent licensing,
commercialization, spin-off, patent banking, and patent-backed financing.
For example, Mitsubishi Electric Research Laboratories (MERL) is the North American arm of the corporateR&D
organization of the Mitsubishi Electric Corporation. MERL conducts application motivated basic research and
advanced development. Total of 1000 MERL issued patents and published patent applications are reviewed for
finding the good candidates for strategically packaged patent portfolio. MERL patents covered several IoT related
applications: Wireless & Optical Communications (IoT Connectivity), Power Distribution System (Smart Grids),
Vehicle Control/Information System (Connected Cars), Electronic Devices (IoT Sensors)and Building Automation

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(Smart Home). Through the IoT application motivated analysis for the IoT related patents, the strategically
packaged patent portfolio regarding the IoT connected electric car can be formed. The strategically packaged
patent portfolio consists of 23 patents that cover the Intelligent Driver/ Navigation SupportSystem,
Safety/Collision Avoidance System, Vehicular Networks, Autonomous Driving System, Voice Control System,
and Wireless Charging System.
Followings summarize some examples of the key MERL patents for the IoT connected electric car.
US20150134244 illustrates the navigation system for predicting travel destinations (e.g., mostfavorite destinations
for the driver) according to a history of destinations. The navigation system uses a prior driving history or habits.
This information is used for making predictions for the current destination desired by a user of the vehicle. The
information can be segregated into distinct user profiles and can include the vehicle location, previous driving
history of the vehicle, previous searching history of a user of the vehicle, or sensory input relating to the
characteristics of the vehicle.
US8831290 illustrates the vehicle safety system that uses the vehicle-mounted camera to detect obstacles near
vehicles. The vehicle safety system detects people and obstacle near moving vehicles, particularly in constricted
environments such as garages, loading docks, drive ways, parking lots, and generally roads, etc., when the vehicle
is backing up.

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US8233389 illustrates the congestion control protocolfor vehicular ad-hoc networks (VANET). The congestion
control protocolextracts and stores local network information, i.e., node density and aggregate data rate,
neighboring node information, number of successes and failures in reception, for incoming and outgoing messages.
It also keeps track of node status. The protocolperforms congestion control, admission controland rebroadcast
control operations.
US20150259007 illustrates the method for a semi-autonomous driving of a vehicle with a steer-by-wire system
having a steering wheel mechanically decoupled from vehicle wheels determines values for the steering angle and
the wheels angle tracking a target value of the wheels angle received from a semi-autonomous driving planning
(SADP) system.
US9159317 illustrates the automatic speechrecognition system that can provide the speechrecognition while
placing low cognitive load on a user.
US8674549 illustrates the system that can exchange energy wirelessly via a coupling of evanescent waves.
For further analysis for the strategically packaged patent portfolio regarding the IoT, please see

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University Internet of Things (IoT) Patent Landscape: https://www.linkedin.com/pulse/university-internet-things-
iot-patent-landscape-lee-ph-d-j-d-clp?trk=pulse_spock-articles
Intellectual Ventures Patents for Internet of Things (IoT): https://www.linkedin.com/pulse/intellectual-ventures-
patents-internet-things-iot-alex-g-?published=t

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2. Developmentof Strategically PackagedPatentPortfolio BestPractice
Zetta Research Development LLC is an intellectual property management company that acquires, develops and
sells patent portfolios from patent holders (startups, inventors, investors and lenders). Zetta finds patent holders
that have potentially valuable patents and helps patent holders to develop and sell the patent portfolios that will be
valuable for a specific emerging business. Patents are assigned into a special purposeholding entity. Zetta’s equity-
based investment exploits the fund it manages. Rather than relying on the litigation enforcement, Zetta seeks to sell
the portfolios to the strategic buyers at the time when market conditions are most advantageous.
Zetta Research and Development LLC, ForC series is a special purposeholding entity for developing strategically
packaged patent portfolio regarding the connected cars. Starting from the U.S. Patent Application No. 61/637,588,
dated 24 Apr. 2012, it developed nice issued patents and six published patent applications regarding V2V (Vehicle
to Vehicle) communication applications for the connected cars. Followings illustrate some key patents that are
developed by Zetta.
US8922391 illustrates the collision avoidance system using the V2V communication system. The V2V
communication system includes the V2V transceiver in a transmitting vehicle that broadcastsV2V messages at
regular intervals. The V2V messages comprise the subject vehicle position, heading and speed that are received
from the gateway. The collision avoidance system computes a likely future location of the subject vehicle and a

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risk value of a possible collision involving the subject vehicle. The collision avoidance system generates a warning
if the computed risk value exceeds a risk threshold.
US9031089 illustrates the vehicle communication system for transmitting and receiving messages regarding the
status of parking spaces, suchas empty or occupied. Only vehicles belonging to a predetermined set are able to
decrypt such messages. The parking information messages describe the shape and size of vehicle entering or
leaving a parking space.

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3. Methodologyfor Developing Strategically PackagedPatentPortfolio
Strategically packaged patent portfolio development in alignment with the specific IoT business interests (e.g.,
smart home automation) requires a deep understating of the IoT technologies, insights into the emerging IoT
market, and extensive experiences in patent analysis and development.
Understating IoT Technologies
Patents are the good information resources for obtaining the IoT technology development status, insights regarding
technical details for a specific IoT technology, and IoT R&D status in a specific company. Followings are the
examples of patent researches for understating the state of the art of the IoT technologies.
IoT Smart Home & Connected Car Convergence Insights from Patents: https://www.linkedin.com/pulse/iot-smart-
home-connected-car-convergence-insights-alex-g-?trk=hp-feed-article-title-publish
IoT Connected Car Insights from Patents: https://www.linkedin.com/pulse/iot-connected-car-insights-from-
patents-alex-g-lee-ph-d-j-d-clp?published=t
IoT Healthcare/Medical Devices Insights from Patents: https://www.linkedin.com/pulse/iot-healthcaremedical-
devices-insights-from-patents-alex-g-?trk=pulse_spock-articles
IoT Security Measures Insights from Patents: https://www.linkedin.com/pulse/internet-things-iot-security-
measures-insights-from-alex-g-?published=t

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IoT Big Data Analytics Insights from Patents: https://www.linkedin.com/pulse/iot-big-data-analytics-insights-
from-patents-lee-ph-d-j-d-clp?trk=pulse_spock-articles
Big Data Applications Insights from Patents: https://www.linkedin.com/pulse/big-data-applications-insights-from-
patents-lee-ph-d-j-d-clp?published=t
Cloud for Internet of Things Insights from Patents: https://www.linkedin.com/pulse/cloud-internet-things-insights-
from-patents-lee-ph-d-j-d-clp?published=t
IoT Smart City Insights from Patents: https://www.linkedin.com/pulse/internet-things-iot-smart-city-insights-
from-patents-alex-g-?published=t
Robots forSmart Home Insights from Patents: https://www.linkedin.com/pulse/robots-smart-home-insights-from-
Artificial Intelligence for Internet of Things Insights from Patents: https://www.linkedin.com/pulse/artificial-
intelligence-internet-things-insights-from-alex-g-?published=t
Deep Learning for Internet of Things (IoT) Insights from Patents: https://www.linkedin.com/pulse/deep-learning-
internet-things-iot-insights-from-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
6LoWPAN & Li-Fi for IoT Connectivity Insights from Patents: https://www.linkedin.com/pulse/6lowpan-li-fi-iot-
connectivity-insights-from-patents-alex-g-?published=t

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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
Fog Computing for Internet of Things Insights from Patents: https://www.linkedin.com/pulse/fog-computing-
internet-things-iot-insights-from-lee-ph-d-j-d-clp?published=t
IoT Ambient Intelligence for Smart Living Insights from Patents: https://www.linkedin.com/pulse/iot-ambient-
intelligence-smart-living-insights-from-alex-g-?published=t
IoT SaaS: Internet of Things Killer Applications Insights from Patents: https://www.linkedin.com/pulse/iot-saas-
internet-things-killer-applications-insights-alex-g-?published=t
Self-Aware Self-Healing Internet of Things (IoT) Insights from Patents: https://www.linkedin.com/pulse/self-
aware-self-healing-internet-things-iot-insights-alex-g-?published=t
Emotion-Aware Internet of Things Insights from Patents: https://www.linkedin.com/pulse/emotion-aware-internet-
things-insights-from-patents-alex-g-?published=t
IoT RF Fingerprinting Insights from Patents: https://www.linkedin.com/pulse/internet-things-iot-rf-fingerprinting-
insights-from-alex-g-?published=t
FinTech, Internet of Things & Patents: https://www.linkedin.com/pulse/fintech-internet-things-patents-alex-g-lee-
ph-d-j-d-clp?trk=pulse_spock-articles
5G for Internet of Things & Patents: https://www.linkedin.com/pulse/5g-internet-things-patents-alex-g-lee-ph-d-j-
d-clp?published=t

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Samsung IoT R&D Insights from Patents: https://www.linkedin.com/pulse/samsung-iot-rd-insights-from-patents-
alex-g-lee-ph-d-j-d-clp?trk=pulse_spock-articles
Cisco IoT R&D Insights from Patents: http://www.slideshare.net/alexglee/cisco-iot-rd-insights-from-patents
Apple IoT R&D Insights from Patents: https://www.linkedin.com/pulse/apple-internet-things-rd-insights-from-
IBM IoT R&D Insights from Patents: https://www.linkedin.com/pulse/ibm-internet-things-rd-insights-from-
Qualcomm IoT R&D Insights from Patents: https://www.linkedin.com/pulse/qualcomm-internet-things-rd-
insights-from-patents-alex-g-?published=t
Understanding Samsung SmartThings from Patents: https://www.linkedin.com/pulse/understanding-samsung-
smartthings-from-patents-lee-ph-d-j-d-clp?published=t
Understanding Autonomous Parking Car Technology from Patents:
https://www.linkedin.com/pulse/understanding-autonomous-parking-car-technology-from-alex-g-
?trk=pulse_spock-articles
Understanding Apple UI/UX for Internet of Things Smart Home from Patents:
https://www.linkedin.com/pulse/understanding-apple-uiux-internet-things-smart-home-alex-g-?published=t

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Emerging Smartphone Killer Applications Insights from Patents: https://www.linkedin.com/pulse/emerging-
smartphone-killer-applications-insights-from-alex-g-?published=t
Future Apple iPhone Insights from Patents: https://www.linkedin.com/pulse/future-apple-iphone-insights-from-
Smart Electronics Cigarette Insights from Patents: https://www.linkedin.com/pulse/smart-electronics-cigarette-
insights-from-patents-alex-g-?published=t
Future Smart UI/UX Insights from Patents: https://www.linkedin.com/pulse/future-smart-uiux-insights-from-
patents-implementing-alex-g-?trk=pulse_spock-articles
Smartphone Mobile Payment Process Insights from Patents: https://www.linkedin.com/pulse/smartphone-mobile-
payment-process-insights-from-lee-ph-d-j-d-clp?trk=pulse_spock-articles
Insights for EmergingIoT Market
Patents are the good information resources for obtaining insights regarding the emerging IoT market. Followings
are the examples of patent researches for understating the IoT business and global IoT business leaders’ strategic
moves, and thus, obtaining insights regarding the emerging IoT market.
.
IoT Business Reality & Patent Development: https://www.linkedin.com/pulse/iot-business-reality-patent-
development-alex-g-lee-ph-d-j-d-clp?trk=hp-feed-article-title-publish

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IoT Ecosystem& Patent Strategy: https://www.linkedin.com/pulse/iot-ecosystem-patent-strategy-alex-g-lee-ph-d-
j-d-clp?trk=pulse_spock-articles
IoT Disruptive Innovation & Patent Exploitation: https://www.linkedin.com/pulse/iot-disruptive-innovation-
patent-exploitation-lee-ph-d-j-d-clp?trk=pulse_spock-articles
IoT Business Models & Patent Eligibility: https://www.linkedin.com/pulse/iot-business-models-patent-eligibility-
alex-g-lee-ph-d-j-d-clp?trk=pulse_spock-articles
2016 Samsung IoT Smart Home Strategy Perspectives from Patents: https://www.linkedin.com/pulse/2016-
samsung-iot-smart-home-strategy-perspectives-alex-g-?published=t
2016 Cisco IoT Networks Strategy Perspectives from Patents: https://www.linkedin.com/pulse/2016-cisco-iot-
networks-strategy-perspectives-from-alex-g-?published=t
2016 IBM IoT Analytics Strategy Perspectives from Patents: https://www.linkedin.com/pulse/2016-ibm-iot-
analytics-strategy-perspectives-from-alex-g-?published=t
2016 GE Industrial IoT Strategy Perspectives from Patents: https://www.linkedin.com/pulse/2016-ge-industrial-
iot-strategy-perspectives-from-alex-g-?published=t
2016 Philips IoT Connected Health Strategy Perspectives from Patents: https://www.linkedin.com/pulse/2016-
philips-iot-connected-health-strategy-from-lee-ph-d-j-d-clp?published=t
2016 Toyota Self-driving Connected Cars Strategy Perspectives from Patents:
https://www.linkedin.com/pulse/2016-toyota-self-driving-connected-cars-strategy-from-alex-g-?published=t

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2016 Verizon IoT Services Strategy Perspectives from Patents: https://www.linkedin.com/pulse/2016-verizon-iot-
services-strategy-perspectives-from-alex-g-?published=t
Qualcomm 5G Standard Candidates R&D Insights from Patents: https://www.linkedin.com/pulse/qualcomm-5g-
standard-candidates-rd-insights-from-lee-ph-d-j-d-clp?published=t
StrategicallyPackaged PatentPortfolioValuePropositions Development
McKinsey introduced the design-to-value (DTV) approachof new productdevelopment for developing winning
products in the emerging markets. The basic conceptof the DTV is to design a productin a way that strategically
includes only the essential features of a productto get the optimal value propositions to costratio, but still
maintaining its market competitiveness. The DTV methodology exploits market insights to figure out the features
that valued most by customers, competitive intelligence to figure out the features in the competitors’ products and
engineering know-how to optimize the value propositions to costratio. Patents can be exploited for the DTV
approachof new IoT products development by using the Blue Ocean Patent Strategy and products insights from
patents.
The basic principle in the Blue Ocean Patent Strategy is to exploit existing patents to achieve the value innovation,
and thus, to serve the customers in fundamentally different ways. By deciding which factors (that are covered by
the existing patents) of the existing products are really crucial, and thus, needed to raise and/or create, the new IoT
products that can change the value propositions from the typical direction of a specific market can be developed.

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Another way to achieve the value innovation is to integrate into the existing platforms. In the technological
assimilation frameworks, a core innovation that once provided stand-alone products orservices 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. By contrasting all possible value propositions from an
existing platform to the potential value propositions provided by the inventive departures (novelty points) 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 of the new IoT products can be developed.
Patents can also provide the insights for the new IoT product development opportunity baseon the scenarios
analysis and killer application design rules. The first step in the scenario analysis is to do patent search and review
for the state of the art of IoT innovation for the specific IoT application. The searched patents that are related to the
specific IoT application should be analyzed to find the measurable user benefits provided by the value propositions
(e.g., automation, care, safety, entertainment) and method/device/system to offer the value propositions. Then, one
should develop a story of the future implementations of the state of the art of IoT innovation for the specific IoT
application exploiting 5W1H - Who, When, Where, What, Why, How. Base on the developed scenarios, potential
improvements over the existing products canbe devised.
For more information regarding the IoT scenarios analysis, please see

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Internet of Things 2020 Scenarios Based on Patents: https://www.linkedin.com/pulse/internet-things-2020-
scenarios-based-patents-lee-ph-d-j-d-clp?trk=pulse_spock-articles
Patents can provide the insights for the IoT killer application design rules: 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 (e.g., Cloud, Big Data Analytics); Rule 8 Security Architectures for Maximum Security
Measures; Rule 9 Exploration of Cross-IndustryApplications; Rule 10 User Experiences (UXs) for Maximum User
Satisfaction
For details regarding the IoT Killer Applications Design Insights, please see
Internet of Things Killer Applications Design Insights from Patents: https://www.linkedin.com/pulse/internet-
things-iot-killer-applications-design-from-alex-g-?published=t

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Alex G. Lee is a principal IP Strategist with TechIPm LLC, an IP strategy consulting firm based in Boston. He is
an emerging technology (Electronics, Computer, IT, Telecom, IoT) patent expert with extensive experience in
technology R&D & management, business development, strategy consulting, and intellectual property management
both in the US and S. Korea. He consulted Fortune 500 companies, patent monetization firms, law firms,
investment firms and research institutions regarding the strategy for patents acquisition, investment, prosecution,
development, litigation, monetization, and commercialization.
He earned Ph.D. in physics from the Johns Hopkins University and J.D. from the Suffolk University Law School.
He registered to practice before the US Patent and Trademark Office. He is a certified licensing professional (CLP).
He passed New State York Bar Exam. He is a member of IEEE, AIPLA, LES and ABA.

Internet of Things (IoT) Strategic Patent Monetization 4Q 2015

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