The business of patents, the creation of a patent marketplace, and the development of patents as an asset class have been frequent themes discussed previously on this blog, and on my Twitter feed. There have also been several posts on how to discuss intellectual property, especially patents with senior management, and how to explain the importance of IP assets in terms that officials with a financial background would relate to, and understand. Developing mechanisms for engaging management in patent related discussions is important, but in order to do so an analyst also needs data to substantiate their claims. Recently, AISTEMOS, a London based IP data analytics company, has launched a beta trial of a new software tool called CIPHER for evaluating patent assets.
From their introductory materials AISTEMOS provides the following description of CIPHER:
CIPHER aggregates, analyses and visualises IP data relating to patents and related events including litigation and licensing. CIPHER will be the world’s first business intelligence product to aggregate, analyse and visualise these datasets for the wider business community. Empowering this ecosystem with real-time access to this information will act as a catalyst in the evolution of IP into a functional asset class.
CIPHER compares patent portfolios based on their value, and associated risk. AISTEMOS has created a proprietary visualization for comparing portfolios based on these metrics that they call the CIPHER Grid. The website talks about the unique details of this feature:
CIPHER’s goal is to provide immediate and actionable insight into the drivers of patent value and risk for the millions of patent owners and their tens of millions of patent families. Our proprietary visualisation is the CIPHER Grid, which having aggregated and analysed all available data plots any company (T) relative to other companies that own similar patent portfolios.
The analytics that support this visualisation include:
- Target portfolio CLUSTERING and NAMING
- Target and Comparable analytics by reference to STATUS, TERRITORY and STRENGTH
- IP Risk analytics by reference to both Non-Practising Entity (NPE) litigation and disputes between operating companies
- IP Value analytics by reference to the known IP licensing landscape, and other drivers of value
While the approach is interesting, what makes the system potentially unique, and powerful is the collection of data sources AISTEMOS has brought together in the tool, including the Derwent World Patents Index, Lex Machina, Patent Freedom, Relecura and 1790 Analytics. A brief description of AISTEMOS’ strategic partners for CIPHER is below:
The company has produced a four minute video introducing CIPHER, and its capabilities which can be viewed here.
Having had a chance to speak with the founders, and see some of the functionality of the system, CIPHER looks to be a powerful tool for helping business decision makers get a better grasp of the dynamics of the patent portfolios they are responsible for, or interested in. There will be additional discussions of the tool, and its potential for patent valuation, and monetization in future posts.
Apparently I am not alone in my excitement, and interest in CIPHER, AISTEMOS released the following press release today discussing the addition of their 50th company to their beta trial program:
CIPHER beta trial programme has attracted over 50 major corporates, banks, accountants, law firms, insurers and consultants
London, 6 August 2014: AISTEMOS, a London based IP data analytics company, has attracted 50 leading organisations to a pilot group for its IP analytics product, CIPHER, in a matter of months. The product’s first public demonstration at the IP Business Congress 2014 event in Amsterdam attracted close to 20 new members.
The group now includes major corporates, banks, accountants, law firms, insurers and consultants, including ARM, BAE Systems, CFC Underwriting, Deutsche Bank, Ernst & Young, Marks & Clerk, PWC, and Slaughter and May. See below for a full list.
Commenting on strong interest in the product, Nigel Swycher, CEO at AISTEMOS, said: “Interest in CIPHER has exceeded our expectations, and reflects a growing desire to unlock the real commercial value of IP. It leaves us in the enviable position of working with some of the world’s leading organisations as we develop the first IP business intelligence product to aggregate, analyse and visualise data relating to patents and related events for the benefit of the wider business community.”
CIPHER was released in beta in June, and already provides instantaneous access to analytics relating to over 30 million patent families across more than 1.5 million owners. Swycher said: “In essence, CIPHER is a big data solution for an asset class that accounts for up to 70% of enterprise value, but has to this point been obscured by unnecessary complexity.”
Pilot group member, Rob Sumroy, partner with Slaughter and May, commented: “The chance to get involved in the pilot group, and help guide the development of CIPHER based on real world experience has been invaluable. The product already offers a simple, yet powerful solution to a complex problem, and I am very much looking forward to seeing the full commercial release in due course.”
The CIPHER Pilot Group:
Allied Security Trust, ARM, Ashurst, BAE Systems, BMS Finance, Carpmaels & Ransford, CFC Underwriting, CIP (Chalmers and Gothenburg University), COBRA Special Risks, CorsicAsia, CSR, Deutsche Bank , DFJ Esprit, DHL Deutsche Post, Edwards Wildman Palmer , Endeavour Partners, Ernst & Young , Freshfields Bruckhaus Deringer, FTI Consulting, GCA Savvian, GP Bullhound, Greenberg Traurig Maher, Harrison Goddard Foote , IP Group, Kempner & Partners, KPMG, Latham and Watkins, Longitude Licensing, Marks & Clerk , Mathys & Squire, Mayer Brown International, Monitise, Novagraaf, Origin, PA Consulting, Perception Partners, PWC , Reddie and Grose, Rouse, Shazam, Slaughter and May, Tessera, The Farrington Group, Titan Medical, Tynax, Valuation Consulting Co, Watermark, WP Thompson and Yet2.com
This is an impressive group made up of a large variety of different organizations that all have a vested interest in the development of IP as a functional asset class. It speaks to the importance of this work, as well as the job that AISTEMOS has done developing the CIPHER system that this many high powered organizations have expressed interest in getting involved with the tool at such an early stage. Stay tuned for additional information on this new system, and approach.