Apple has traditionally developed its patents within the company, but recently it has changed its approach and started acquiring patents. The change in Apple's approach towards IP development might have two reasons. First, the acquired patents complement Apple's product line and they can be used strategically for litigation purposes.
The number of patents Apple acquired outside of the company has been growing steadily for the last 4 years from 62 patents in 2008 to 1264 patents in 2012. The necessity in patent acquisition is mainly driven by the necessity to protect some of the aspects of its products.
Envision IP article
It seems to me that Apple's sudden change of approach is no coincidence. They are acquiring patents because they simply can't come up with as many new things as they did before. Their innovation is sinking, and the trend is already visible since Steve Jobs' death, with no new products of the same level of innovation as they've brought in the past. If you can't beat 'em, join 'em... or acquire them.
ReplyDeleteYuval,
DeleteI think you are right. But we also have to keep in mind that Apple is a tech giant - and has captured all the consumer surplus with its target audience. The market of tablets and smartphones might be saturated already, and in order to innovate, Apple might have to think of entering new markets to keep its market power strong.
I agree with Yuval, Apple needs more ammo to defend itself and since they can't find that within the company with its declining stock--it is looking elsewhere to maintain its image and rep among its litigation.
ReplyDeleteSargun,
DeleteI agree with you as well. Apple should consider the most cost-effective strategy for their R&D. And in this case, I believe, it is patent acquisition.
Wow, 62 to 1264 patents is a big change. I feel like all these types of companies think that obtaining patents is more important than developing new products.
ReplyDeleteElisa,
DeleteSometimes acquiring patents is most cost-effective strategy for big companies with a lot of cash.
It's interesting because one of Apple's cited fallbacks is their lack of innovation lately when in the past they were the pioneers of smartphone design. Now the tables have turned and to stay competitive in this fast-moving industry, this is really necessary...
ReplyDeleteSandy,
DeleteDo you think that maybe the market of smartphones is in its maturity??
1264. Impressive. Once again, I feel like this is an instance where the true goal of patents, inspiring innovation, is somewhat neglected when people spend less on R&D, the source of innovation, to just get ammunition for patent litigation.
ReplyDeleteAlso, I agree with Yuval and Sargun, and perhaps they've made this switch simply because they can't keep innovating at the rate that they were used to and now have to outsource their patents by looking elsewhere.
wow. this is amazing. I did not knew that apple has been starting to acquire patents. it's amazing to see that apple did not file for any patents in 2012
ReplyDeleteI can't believe that they acquired more patents than they filed in 2012. This drastic change in methodology has to have been implemented as Jobs passed away.
ReplyDeleteI would guess maybe they don't have the data for filing in 2012, I can't imagine they dropped from about 900 to 0.
ReplyDelete