Navigating Volume vs. Quality in Modern IP
Determining a patent's strength from both a technical and licensing perspective takes a very specific set of skills. While citation analysis and automated software analytics can serve as basic indicators of viability, the only true assessment of a patent's overall value comes from pure human intelligence.
The United States Patent and Trademark Office issues roughly 300,000 patents each year, with even higher numbers of applications filed annually. While patent examination practices have become more refined and efficient, the official examination process is primarily designed to focus on a patent’s eligibility rather than its true operational quality or market impact.
The 5 Levels of Invention: Where Real Value Lies
According to landmark research (“Updating TRIZ: 2006-2008 Patent Research Findings”), patents can be categorized across five distinct levels of invention. The data reveals a stark contrast between sheer portfolio volume and actual economic return:
Routine Solutions (15%) & Minor Improvements (60%): The vast majority of an average patent portfolio consists of baseline or incremental updates. Together, these lower tiers account for a massive share of portfolio quantity, yet generate only a fraction of its financial value.
Significant Improvements (20%), New Generation (3%), & Pioneering Inventions (2%): At the peak of the pyramid, truly groundbreaking inventions make up a small percentage of your overall asset count, yet they account for the vast majority of your portfolio's total market value.
Quantifying the Return on Innovation
When mapped against real market activity and transaction data, the inverse relationship between quantity and value becomes crystal clear. Pioneering and new-generation inventions drive the overwhelming majority of portfolio revenue, while routine solutions contribute minimal financial leverage.
The TAEUSworks™ Evaluation Standard
TAEUS set the gold standard in evaluating patents using thought-leaders and key technologists embedded directly in the relevant fields of technology. Our rigorous evaluation process has been repeatedly vetted by major global corporations and premier patent auctions.
A TAEUSworks™ Patent Evaluation leverages our extensive network of subject matter experts to predict a patent’s structural strength from a technical perspective. We analyze and rate every asset through an intricate examination framework measuring:
Market Impact: How the invention dictates or influences industry standards.
Licensability: The practical viability of asserting the claims commercially.
Overall Patent Quality: Uncompromising technical integrity under pressure.
Turn Data Into Profitable Licensing Campaigns
The result of our analysis is translated into clear, actionable intelligence tailored to your strategic goals. Our deliverables include a definitive roadmap of which patents are best suited for defensive positioning, divestiture, or aggressive monetization.
Furthermore, our analysis identifies companies currently operating in your market space and potentially utilizing your technology—giving you an immediate head start on active licensing campaigns. Historically, TAEUS patent evaluations have closely tracked actual auction sale prices, proving that our methodology provides accurate quality metrics that lead to profitable commercial outcomes.