IBM Patent Grant Leadership 1993 to October 2022
American corporations have transformed entire industries through aggressive patenting practices, and most, at the time, were highly valued, long-term investments.
Eastman Kodak, as for example, he turned the entire photographic industry from a professional-only vocation to a pleasurable form of mass recreation: “You push the button – – – – we do the rest.” It was a proprietary service for which the corporation and its four stakeholders: customers, shareholders, employees, and society, were well rewarded.
Since its founding, patents have also been important to IBM (NYSE:IBM). In 1938, Tom Watson Sr. told his shareholders that in the twenty-four years since he took over the company, he had obtained 1,301 patents, a little over 50 patents a year. By comparison, over the last three years, IBM has received, on average, 9,025 annual patent grants. This is astronomical growth, mostly achieved since 1993, and you can’t take IBM’s decades of patent leadership away from those employees who responsibly moved their ideas from the conceptual realm to the realm of revenue-generating, patentable offerings.
For the past three decades, IBM has been an industry leader in this measurement.
But as of October this year, IBM’s patent output has fallen off a cliff. This gives Samsung (OTCPK:SSNLF) a shot at becoming this year’s pennant winner. If so, IBM will close its third full decade of patent leadership with a groan rather than a flourish.
Either way, it will be a newsworthy event to evaluate when kicking off your investments for 2023!
Let’s look at the details of the annual patent and then consider investment options.
A possible changing of the guard in the annual patent leadership
Samsung is on the right track. It maintains its consistent performance year after year. During each of the Octobers of the last three years, Samsung has obtained patents granted for 5310, 5348 and 5372, respectively. As of October this year, Samsung has 5238 patent grants, only 2% recoverable.
Through each of the Octobers of the past three years, IBM has obtained 8,537, 8,003, and 7,010 patents, respectively, falling 6% and then 18% over the two years. As of October this year, IBM has only 3,626 patent grants, a shortfall, now, of nearly 60% from its October 2019 achievement.
As reflected in the chart below, Samsung has now posted a fourth quarter first: at the end of October, it surpassed IBM in annual patent grants: 5,238 to 3,626.
Samsung is positioned to capture the flag: the 2022 patent pennant!
Can IBM recover?
The year before, IBM received 1,671 patent grants in November and December, its highest two-month closing number since 2015. If IBM delivers another similar two-month execution, and Samsung stops, the corporation may notch another victory.
IBM: short-term or long-term investment decisions
Whether or not IBM gets another win, this is going to be a newsworthy event: IBM will bring three full decades to a close:exactly thirty years, of obvious leadership with a flourish or a groan. In any case, the headlines are going to fly. Your level of interest and the timing of your next investment in either company will depend on whether you are a short-term or long-term investor.
If you are a short-term investor practicing “buy on the rumour, sell on the news” or its antithesis “sell on the rumour, buy on the news”, this article states facts as of October 2022, not rumours, but no one can see the future.
So while this isn’t a rumour, it will be a year-end photo finale where the top two contestants sprint towards the finish line, and the winner is up for grabs.
Make your “rumor-buy” or your “rumor-sell” before the end of the year.
However, I have never been a short-term investor.
Be careful, huh?
If you are a long-term investor Anyone who is looking for signs that the IBM destroyer is continuing to turn, has started to turn, for better or worse, or is simply taking on more water, will have one more indication of the state of the IBM warship in January 2023. .
To me, whether or not IBM pulls this off, I see a three-year drop in patent output. As you can see from 2007, this can be fixed quickly, but as a long-term perspective type of person, even if IBM doesn’t drop from its annual patent leadership position, I’ll just add another”p” to my long-term vision for the corporation as set forth in Think again! The Rometty Edition:
IBM’s corner office doesn’t understand.”invest first in the business.” For three decades, its corner offices have invested in paper instead of investing to make your pmore productive people pmore effective processes pmost valuable products… and now,
its pHigher-quality agents in ever-increasing quantities..
In any case, January 2023 will be a newsworthy event for investors. Remember that, whether as a short or long term investor:
Prevented is worth two.
The latest 2022 annual patent grant numbers cited above are through the end of October 2022. The latest patent numbers have already been updated and as of November 8, 2022, were Samsung 5349 and IBM 3745.
IFI CLAIMS Patent Services provides monthly, annual, near real-time and historical information on patents by company. The annual patent grant information cited above and more can be accessed on their rankings home page [here].