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After 29 years of dominating patent acquisition, IBM finds itself at a crossroads as its patent filings plummeted by nearly 60% in just two years. This is according to Stocklytics.com.
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This decline comes as tech giants such as Samsung and TSMC pivot their focus towards artificial intelligence (AI) and machine learning, leaving IBM struggling to keep pace.
Edith Reads, financial analyst at Stocklytics.com, remarks, “Cultivating a new culture of open innovation is undeniably important in today’s changing world of technology. However, IBM’s embrace of open innovation has led to the reduction in its patents. This approach could potentially undermine the competitive advantage that the company has worked hard to establish over time. Collaborating with others promotes creativity and speeds up the pace of innovation. However, it is crucial for IBM to find a delicate equilibrium to protect its long-term growth path and preserve value for its shareholders.”
The surge in patent applications across the tech sector since the onset of the pandemic in 2019 reflects a renewed push for innovation. However, the grant trend tells a different story, with the number of patents granted experiencing a decline since 2019. In 2023, only 312,095 patents were granted, down 3.4% from the previous year.
Once the undisputed leader in patent acquisition, IBM has now been surpassed by companies like Samsung, Qualcomm, and TSMC. In 2022, Samsung claimed the top spot with 6,248 patents, while IBM secured 4,383 patents. By 2023, IBM’s patent count dwindled further, landing the company in fourth place. The whole story and statistics can be found here: IBM Faces Unprecedented Patent Decline Amidst Shifting Tech Landscape.
