New IoT Product/Service Development Even though the IoT is getting a huge attention recently the concept of interconnected billions of devices is not new and has been under development for over 10 years. Thus, there are 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.

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Internet of Things 2015 Year End Review (3): IoT Opportunities and Risks Insights from Patents
Alex G. Lee (alexglee@techipm.com)
https://www.linkedin.com/today/author/2853055
New IoT Product/ServiceDevelopment
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 are 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.
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. Forexample, a company in the consumer
electronics industry that wants to enter the connected car industry can exploit existing patents that cover the factors
of the strategy canvas. By deciding which factors (that are covered by the existing patents) are really crucial, and
thus, needed to raise and/or create, a new business model that changes the nature of competition away from the
typical direction of the medical device industry can be developed. Patents regarding superior UI/UX,
compact/portabledesign, robust wireless connectivity are the good candidates for the BLUE OCEAN FACTORS.

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Another way to achieve the value innovation is to integrate into the existing platforms. HBS ProfessorIansiti, the
author of “The Keystone Advantage,” suggested technological assimilation as a new engine for technological
innovations in his article “Creative Construction.” In the technological assimilation frameworks, a core innovation
that once provided stand-alone products or services for a specific market can be the building blocks for mass
market generating innovations through assimilation to broaderplatforms that were not existed at the time of
innovations. A good example may be the GPS technology providing LBS (location based services) applications for
smartphones and automobiles. Another good example may be the DVR technology of TiVo that was integrated
into digital set-top boxplatforms. 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 can be developed.
Patents also can be exploited to identify new IoT (Internet of Things) product/service development opportunities
by the scenarios analysis. The scenarios analysis can show potential interactions between the future users and the
new IoT product/service via the specific usage of the product/service and behavior of the user under environments
provided by the product/service functionality/offering. Thus, the scenarios analysis exploiting patent information
can provide the new IoT product/service concept(e.g., specific benefits to the user, productdesign, product
functionality and the technology for the product).

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Investmentfor New IoT Innovations/Startups/M&A/JointVenture
Patent information can provide insights regarding the state of the art of the IoT innovations. Thus, one can identify
the potential further innovation R&D areas (“white space”) that can lead to new products/services development
through the patent analysis. For example, in-depth analysis of smart home patents reviles that most of the patent
applications are for the incremental innovations of the current market products/services. 13% of the total patent
applications are for the innovations of the potential new market products/services: Adaptable Autonomous Smart
Home System (The adaptable autonomous smart home system can recognize the contextual or semantic profiling
of a person or place or devices (physical environment) based on sensed data by the IoT devices. The adaptable
autonomous smart home system determines particular interpretation instructions (define particular IoT device
control rules) that are associated with the particular physical environment and dynamically updates the control
rules for changing physical environment); Self-Aware Self-Healing Smart Home System; Artificial Intelligence
including Deep Learning Applications; Cloud/Big Data/SaaS; Robots;New UX for Smart Home System; Cross-
industry Convergence; and Emotion-Aware Smart Home System. Patent information also can provide insights
regarding a new statups to becomeplay a leading role in the emerging IoT market (and thus, can be a good
investment/M&A target) and joint venture opportunities.

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New PatentMonetization Model
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 in alignment with the specific IoT business interests (e.g., smart home
automation) can be developed using the existing patents and/or by strategically developing new patents.
Development of the strategically packaged patent portfolio requires a deep understating of the IoT technologies,
extensive experiences in patent analysis and development, and insights into the emerging IoT market. 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 detailed information, please visit
http://www.slideshare.net/alexglee/best-practices-of-ip-patent-strategy-iot-internet-of-things-case-study.
Potential PatentDisputes
As we have seen in the smartphone market development, it is expected that the super-competition to preoccupythe
leadership in the lucrative IoT market can lead to another round of patent wars. The post-smartphonepatent wars,
however, will be more extensive because of more extensive participation of players across several different
industries. The post-smartphonepatent wars will also be more complex because of the recent rapid change in legal
environment and the learning curve from the smartphone patent wars.

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To assess the potential patent disputes risk of the IoT, patent landscapes of three major IoT applications – smart
home, connected car, connected health (including healthcare/fitness wearable devices) – and IoT platform
connectivity are researched. Followings summarize the potential patent disputes risk for each subfield of the IoT.
Smart Home
Interesting point in the smart home patent land scapeis a large number of patents owned by two startups - Allure
Energy (9 %) and Ecofactor(5 %) - that are not successfulin the IoT smart home market compare to their marker
leader competitors such as Nest Labs and Ecobee. A large number of patents owned by commercially unsuccessful
companies can be the potential patent disputes risk to the smart home companies.
Connected Car
Interesting point of the connected car patent landscape is the large number of patents owned by two active patent
monetizing entities - Omega Patents and American Vehicular Sciences and a suspected entity - AutoConnect
Holdings. The large number of patents owned by the patent monetizing entities is a potential patent disputes risk
for the connected car industry.
Connected Health
Interesting point of the connected health patent landscape is the large number of patents owned by the active patent
monetizing entitiy - Empire IP LLC, which is a potential patent disputes risk for the connected health companies.

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Interesting point of the personal fitness/health care devices patent landscape is the large number of patents owned
by many commercially unsuccessfulcompanies and NPEs. Another interesting point is the small number of patents
owned by commercially successfulcompanies (e.g., Under Armour).
IoT Platform Connectivity
Interesting point of the IoT platform connectivity is the large number of patents owned by many active patent
monetizing entities - InterDigital, Optis Cellular Technology, Intellectual Ventures, Innovatio IP Ventures, Adaptix
(Acacia), Evolved Wireless LLC, Wi-Fi One and WiLAN. The large number of patents owned by many patent
monetizing entities is a potential patent disputes risk.
One can develop a strategic forecasting methodology to predict the possible emerging development of the post-
smartphone patent wars and a strategic planning methodology to prepare for the emerging post-smartphonepatent
wars. Fordetailed information, please visit http://www.slideshare.net/alexglee/postsmartphone-wearables-iot-
devices-patent-wars-strategic-forecasting-methodology and http://www.slideshare.net/alexglee/postsmartphone-
wearables-iot-devices-patent-wars-strategy-development.
Happy New Year!

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Internet of Things (IoT) Strategic Patent Development & Monetization for New Business Creation
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 are 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.
TechIPm has developed an insightful new patent development and monetization methodology for the emerging IoT
market.
Many patent applications and newly issued patents can be further developed for creating new values by amending
and creating claims and generating follow-on patents to encompass emerging technology and products/services
trends, market demands, and strategic exploitation goals. TechIPm provides consulting for improving existing
patents to obtain maximum ROI. TechIPm also provides consulting on developing new patents that can lead to new
IoT product/servicedevelopment exploiting the strategic patent preparation & prosecution, white spaceanalysis,
and scenario analysis.

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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.
Techipm develops the strategically packaged patent portfolio in alignment with a client’s specific IoT business
interests (e.g., smart home automation). TechIPm’s methodology for developing the strategically packaged patent
portfolio is based on a deep understating of the IoT technologies, extensive experiences in patent analysis and
development, and insights into the emerging IoT market. The strategically packaged patent portfolio can be used
for monetization through patent sale, patent licensing, commercialization, spin-off, patent banking, and patent-
backed financing. TechIPm also can provide consulting on developing monetization program for exploiting the IoT
strategically packaged patent portfolio.
For detailed information, please visit
http://www.slideshare.net/alexglee/best-practices-of-ip-patent-strategy-iot-internet-of-things-case-study