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If my foresight were as clear as my hindsight, I should be better off by a damned sight.

J. L. Mott, President of the Iron and Steel Association, 1873

IBM's 21st Century Patent Leadership Home Page

Published July 26, 2021
​Updated November 10, 2022
A line graph that shows the history of IBM patent performance from 1993 through October 2022.
There are two industry measurements of patent leadership: quantity and quality. The industry so far has been focused on the former. It is time the latter gained more attention. These are the two types of patent measurements:

  • Yearly patent grants documented in the chart above shows IBM's yearly dropping patent production over the last three years of 6%, 18%, and, now, almost 60% through October 2022. IBM's yearly patent-grant leadership is being challenged by Samsung's consistent performance [See competitive chart in the article]. This is a measurement of yearly patent production or quantity.

  • IFI CLAIMS Patent Services “Ultimate Owner Ranking,” a new measurement, took front and center in 2018. Although this is still not a perfect measurement for patents, it is more effective in measuring a corporation's worldwide patent ownership, efficiency, and effectiveness: the quality of patents being produced. By this new "patent families" measurement, IBM in 2021 slipped to a very, very distant eighth place behind first place Samsung.

Patent quantity, patent quality, and other patent information is available at IFI CLAIMS Patent Services: [here].
IBM's 21st Century Patent Leadership
  • Introduction to IBM's Patent History
  • Three Decades of Patent Leadership Is Being Challenged
  • A New Patent Measurement Makes its Mark
  • ​IBM's Ultimate Owner Patent Performance

 Introduction to IBM's Patent History
There is no taking away IBM’s decades of patent leadership from those who are responsible for moving ideas into the realm of patentable, revenue-producing offerings. Patents have been important to IBM since its founding.
Other American corporations such as the Eastman Kodak Corporation have transformed whole industries through patents. In its case, taking photography from the realm of professional only, to an enjoyable form of mass recreation: "You press the button ... we do the rest."
​

In 1938, Tom Watson Sr. told his shareholders that in 1937 “85 patents with 985 claims were granted” and “299 applications were pending.” He commented that in the twenty-four years since he took over the company, it had obtained 1301 patents.
Image of Eastman Kodak Company Advertisement from 1889.
In comparison, in 2020 alone, IBM applied for 7,772 patents and was granted 9,138 patents.

It is a proud history, but change is on the horizon.
 Three Decades of IBM Patent Leadership Is Being Challenged
In 1992, Japanese companies had owned the first-place patent position for a decade. IBM was in a distant sixth place, but the next year it jumped from sixth into first place. It has not relinquished this first-place position since. This leadership position has been maintained by the individuals who worked for four separate chief executive officers: Louis V. Gerstner, Samuel J. Palmisano, Virginia M. Rometty, and Arvind Krishna.
An line graph showing how many yearly patents IBM has been awarded from 1993 through 2021.
This is an amazing performance turned in by the corporation’s worldwide team of engineers, architects, and developers, but a change of leadership may be on the horizon; because . . . as can be seen in the chart below, since Arvind Krishna assumed the corner office, patent production has fallen by 6% in 2020, 18% in 2021, and almost 60% as of October 2022.
A line graph that shows the history of IBM patent performance from 1993 through October 2022.
This has opened up the opportunity, shown in the chart below, for Samsung to displace IBM as the yearly patent-grant leader in 2022. In October 2022, Samsung pulled off a fourth-quarter first: It surpassed IBM in yearly patent-grant production.
Chart showing the annual patent production of IBM and Samsung from 2016 through October 2022. Sumsung in the fourth quarter of 2022 took the patent lead from IBM.
 A New Patent Measurement Makes its Mark
​In 2018, a new measurement took front and center as a measurement for a corporation's patent performance: IFI Claims Patent Services “Ultimate Owner Ranking.” Although this is still not a perfect measurement for patents, it is more effective in measuring patent ownership, efficiency and effectiveness: quality.
​
By this new, updated measurement, Samsung had in 2020 more than double the patent families of IBM: 109%.
IBM and Samsung patent leadership in 2020 as measured by IFI Claims Patent Services
And as seen in this consolidated chart, Samsung has been efficiently growing its patent lead in the worldwide, quality measurement.
Chart showing Samsung as the undisputed quality patent leader from 2018 through 2021. It now has 116% more worldwide patent families than IBM.
​As seen in the following 2020 and 2019 charts Samsung has been growing its lead over IBM. This is an amazing performance on the part of Samsung Corporation and its researchers and engineers.
IBM and Samsung patent leadership in 2018 as measured by IFI Claims Patent Services
IBM and Samsung patent leadership in 2019 as measured by IFI Claims Patent Services
According to this new measurement, there is a new patent leader: Samsung. Of course, it all depends on how an analyst looks at the data, or how the displaced patent leader chooses to react to it. A corporation can continue to live in the past with its old glories and churn out press releases about a less meaningful measurement, or it can analyze, adapt and change its internal processes in a pursuit of excellence.
​
This is the topic of the following articles evaluating IBM and Samsung’s patent performances.
 IBM's Ultimate Owner Patent Performance
These three articles are similar. The only difference is the actual performance of the top three performers in each year: 2021, 2020, 2019, and 2018. The articles utilize the same baseball analogy to discuss the differences between two competitors, one of which has a philosophy of “putting runners on base” (IBM) and another which “drives runners across home plate" (Samsung).​
IBM's 2021 Ultimate Owner Patent Performance
​In 2021, Samsung produced almost 116% more patent families than IBM. Select the button to the left to read the article.

IBM's 2020 Ultimate Owner Patent Performance
​In 2020, Samsung produced almost 110% more patent families than IBM. Select the button to the left to read the article.

IBM's 2019 Ultimate Owner Patent Performance
​In 2019, Samsung doubled the number of IBM patent families. Select the button to the left to read the article.

IBM's 2018 Ultimate Owner Patent Performance
​In 2018, Samsung produced almost 80% more patent families than IBM. Select the button to the left to read the article.

REturn to IBM's 21st Century Corporate Performance
© 2022 Peter E. Greulich. All Rights Reserved
​
Information posted on this site recognizes the legal right of copyrighted material. The following material is considered in the public domain effective January 1, 2022: (1) works published in the United States prior to 1927, (2) works published in the United States after 1926 but before 1964 with a proper © copyright notice that were not renewed in their 28th year, and (3) works published in the United States before 1978 that have no © copyright notice, and (4) all unpublished works created over 120 years ago. Other documents used here that do not fit these criteria are used in good faith and a belief that such usage would withstand a test of fair use. Any concerns with the public domain or fair usage of material on this site will be removed until a discussion can resolve the matter with its permanent removal or republication. Just use the "Contact" menu item above or the "Contact Us" hyperlink provided here: [Contact Us]
  • Home
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      • Preface
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        • R.A. Day Kills Productivity
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          • Swope of G.E.
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          • A Business Biography
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          • Selected Addresses
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        • The Need to Decentralize
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        • Martin Schroeter
      • Employees >
        • Resource Actions
        • Age Discrimination >
          • Cutting Old Heads
        • Employee Engagement
        • Aren't Buying Into IBM
        • Massive Work Slowdown
        • Failure of Work at Home
      • Financial Engineering >
        • Workforce Rebalancing
        • Aggressive Bookkeeping
      • Shareholders >
        • Share Buybacks
        • Shareholder Risk
        • Employee Engagement
        • Warren Buffett's Mistake
        • Do Share Buybacks Work?
    • CEO Performance >
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        • First Year Performance >
          • Revenue & Profit
          • Revenue & Profit Growth
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          • IBM Market Value
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          • Share Buybacks
        • The First 100 Days
      • Ginni Rometty Overview >
        • Shareholder Value
        • Shareholder Risk
        • Share Buybacks
        • Dividend Strategy
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        • Revenue & Profit Growth
        • Revenue & Profit
  • 20th Century IBM
    • Corporate Performance >
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        • Shareholder Returns
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        • Revenue Per Employee
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        • Profit Per Employee
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        • Goodwill
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        • CEO Historic Footnotes >
          • IBM's Founding Team
          • Financial Engineering
          • The Greatest Gamble
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      • IBM Creativity >
        • IBM Cartoons
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        • IBM UK Dictionary
        • IBM Computing Dictionary
      • IBM Wild Ducks >
        • The Wild Goose
        • Royal Dissenters
        • Corporate Constitution
        • Respect for the Individual
        • Service to the Customer
        • Pursuit of Excellence
    • Corporate Products >
      • 1890: U.S. Census
      • 1920: Dayton Scales
      • 1940: The Electromatic
    • Thomas J. Watson Sr. >
      • Articles by Watson >
        • On World Peace
        • On the Cost of War
        • On Public Education
        • On Thomas Jefferson
        • On Thoughtful Mistakes
        • On Stakeholder Relations
      • Articles about Watson >
        • The $1,000-A-Day Chief Executive Officer
        • Employees are Valued
        • Democracy's Man o' War
        • Human Relations in 1956
        • A CEO Who Earned His Pay
        • The Lengthening Shadow
      • Slice of Life Stories >
        • Dali, Salvador
        • Drucker, Peter F. >
          • Authority and Power
          • Short-Term Thinking
          • A Corporate Culture
          • Raising Business Issues
          • Focus on Principles
          • Character and Manners
          • Knowledge Workers
          • Recognizing Ability
          • Individual Respect
          • Employee Paternalism
        • Eastman, George
        • Penney, J. C. (James Cash) >
          • Watson Homestead
          • Golden Rule Businesses
        • Fighting Discrimination
      • Pre-World War II >
        • A Lost Dream of Peace
        • USO Camp Show Founder
      • World War II Effort >
        • Selling War Bonds
        • Production Awards
        • Controlling Profits
        • Machine Records Units
        • Wartime Contributions
        • Widows & Orphans Fund
        • Declaring Human Rights
        • Supporting Home Morale
        • Employee Military Service
        • War's End & Reconversion
      • Post-World War II >
        • Endicott Memorial
        • Poughkeepsie Memorial
        • Rehiring WWII Veterans
      • A Pajama Party
      • A 1943 Tax Problem
      • The Story of "THINK"
      • A Gift of Retirement
      • Learning from Crises
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