| As global stock markets continue to struggle, smart | | | | companies are making technology investments. |
| investors seeking to capitalize on relatively cheap | | | | For example, corn-based ethanolic biofuels gained |
| stock prices are searching for promising investment | | | | acceptance in the market in recent years. However, |
| opportunities. Unfortunately, however, most investors | | | | this technology now appears to be on the wane |
| are likely relying on the same sources of investment | | | | because of the huge increase in food prices that |
| information that failed to accurately predict the current | | | | occurred during 2008 due to greater demand for |
| stock market situation. If the predictive nature of this | | | | ethanol. Market forces clearly demonstrated that |
| information has been wrong time and time again, why | | | | biofuels should not be made from food sources, such |
| do investors continue to rely on it? The answer is | | | | as corn. As a result, biofuel technology appears to be |
| pretty simple: investment professionals lack knowledge | | | | moving toward non-food mass starting materials. |
| that alternative sources of information exist. | | | | One such source of non-food mass starting material is |
| One such alternative approach to making investment | | | | switchgrass. Not only is this plant unsuitable for |
| decisions involves using patent landscaping analytics to | | | | providing food such that its use will not cause food to |
| assess existing investment in a particular product or | | | | be re-directed toward fuel production, recent research |
| technology area. My research demonstrates that | | | | demonsrates that it is a more efficient source of |
| properly conducted patent landscaping analytics can | | | | ethanol than corn. Thus, it would appear that |
| effectively allow one to predict the future trajectory of | | | | switchgrass biofuel technology holds good investment |
| product development by companies. | | | | potential. Nonetheless, before getting excited about |
| For example, the fact that Google and Yahoo intended | | | | investing in technology related to switchgrass-derived |
| to significantly invest in Intenet-based television | | | | biofuels, a smart investor should look to see whether |
| technology was fully predictable from their patent | | | | any company owns patent rights in this technology |
| filings many months before Google and Yahoo actually | | | | area. |
| made their respective public announcement of such | | | | To this end, a patent search reveals that there are |
| plans. AT&T's launch of its U-Verse Internet | | | | only 7 patent filings that mention "switchgrass" and |
| television service was similarly predictable from the | | | | "biofuel" in the claims--all patent applications. The |
| volume of patent filings in this technology area. | | | | earliest filing date of any of these applications is late |
| One looking to invest in a company or investment fund | | | | 2006, thus signifying that this technology is only just |
| with offerings in the Internet television-related area | | | | emerging. This information demonstrates that one |
| would have been well-served by using this information | | | | seeking to invest in this area should examine these |
| to decide to move forward with caution. That is, | | | | patent filings in more detail. This investigation should |
| Google, Yahoo and AT & T's respective deep | | | | focus not only on the claim scope and technology |
| pockets should serve as a signal that competition in | | | | "quality," but also on whether the owner of the claims |
| this area will be fierce in the foreseeable future. This | | | | has the requisite deep pockets to make it more likely |
| means that even if a company or technology | | | | that their technology will succeed in the marketplace. |
| emerges that is superior to those currently being | | | | Additionally, after investing, one should regularly |
| offered, these "big boys" may still win in the | | | | re-check the relevant patent filing information related to |
| marketplace. Therefore, a potential investor in Internet | | | | switchgrass-derived biofuels to determine if investment |
| television technology should take great care not | | | | assumptions and projections still remain viable. |
| become enamoured with a superior technology or | | | | There are no doubt countless other examples of how |
| apparently brilliant start-up business plan, because the | | | | patent analytics can improve the quality of investment |
| patent landscape demonstrates that the Internet | | | | decisions in emerging technology areas. While |
| television marketplace will be a tough place to play. | | | | investment professionals may find patents an |
| Of course, the above example is a look into the rear | | | | unfamiliar and arcane source of information to include |
| view mirror because Internet television has already | | | | in their vetting and selection processes, recent events |
| been introduced to consumers. More interesting would | | | | in the world financial markets indicate that change is |
| be application of patent analytics to products and | | | | needed in the way that money is invested in |
| technology that have yet to make it to market in | | | | companies and technology. Integration of patent |
| significant form. One such area is biofuels, where | | | | information into investment decision-making could |
| examination of patent filings can demonstrate what | | | | constitute a necessary innovation. |