The Japanese Patent Office (JPO) updated its annual report on “Recent Trends in Business-Related Inventions” in November 2023. The report has summarized patent filings and examination trends in business-related inventions between 1997 and 2021. As for the 2020 updates, please refer to our past newsletter (click here). This article will analyze patent filing trends in business-related inventions whose numbers have recently ramped up.
Number of patent applications for business-related inventions and the grant rate between 1997 and 2021
The above graph shows the growing number of filings of business-related inventions since 2011. The patent grant rate is also on the rise year by year reaching over 70%. The patent grant rate follows a similar trajectory to other technical fields.
What are business-related inventions?
Business-related inventions are defined as inventions which are worked by business methods applying to ICT (information and communication technologies). Patents for business-related inventions are categorized into International Patent Classification (IPC) or FI term “G06Q.”
In other words, business-related inventions are inventions of “using services,” therefore, the technology per se does not necessarily require to have any technical features. Rather, how to implement the technology to work the business-related invention needs to have technical features. Just a “flash on inspiration” which may create innovation could be protected by patents. Therefore, an applicant should be able to strengthen their filing activity through identifying a potential patentable invention, brainstorming or developing ideas. Any ideas which have not been designed or implemented may be the subject of patent prosecution or patent enforcement. Identifying a patentable invention will prompt an applicant to accelerate filing more number of patent applications for business-related inventions.
Patent filing trends in business-related inventions by business fields
Rank No. 1: Services – accommodation, restaurants, transportation, etc.
Rank No. 2: Administration/Management – internal operation system, production management, stock management
Rank No. 3: EC/Marketing – e-commerce, advertisement
Breaking down the patent applications by industry, those in the fields of services, administration, e-commerce and marketing have surged. The above graph presents that growing number of cases for business-related inventions by non-electrical enterprises has been filed backed by a tailwind of digital transformation. Over the past six years, the number of applications grows five times in the services and administration industries. In particular, as AI technologies are well suited to the services industry which offers high-quality “things” to consumers, business-related inventions linked with AI technologies are booming as well.
Patent trends in AI-related inventions in the above business fields
Rank No. 1: Administration/Management – internal operation system, production management, stock management
Rank No. 2: Services – accommodation, restaurants, transportation, etc.
Rank No. 3: EC/Marketing – e-commerce, advertisement
Likewise, AI-related inventions are boosting especially in the business sectors of administration and management. It is believed that there are a lot of operational works related to optimization, which is highly compatible with AIs. It is highly probable that the number of patent applications related to generative AIs will also be increasing in the near future.
The next graph shows the trends in patent applications among China, the U.S.A, Korea, Japan, Europe, and WIPO.
Comparing with the number of patent applications filed at the major jurisdictions, JPO is most favorable to applicants while the EPO is least in terms of patent examination. In the U.S., the Supreme Court’s decision in Alice Corp. v. CLS Bank adversely affected applicants’ filing appetites and the number of their patent filings was temporarily shrinking. Later on, the United States Patent and Trademark Office (USPTO) revised the Examination Standards to clarify the guidance of patent examination on business-related inventions. Now, the number of patent applications is edging up. In Europe, strict examination on business-related inventions remains unchanged and the number of cases marked the lowest among the major jurisdictions. In China, the number of cases is keeping on a significant rise. The State Intellectual Property Office of China (SIPO) Examination Standards were revised in April 2017 and clarified descriptions of business-related inventions.
Our comment
The number of patent applications of business-related inventions has drastically been increasing in recent years. This JPO annual survey reflects that business-related inventions linked with AI technologies are drawing attention from the public. This is because business diversification and digital transformation are permeating throughout society. Seemingly, there is a growing trend on patent applications for business-related inventions, or inventions along with ideas of “things”, which cannot be fallen into one technical field. Looking ahead, patent filings related to generative AIs will be increasing as well.
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