Patent Share

AAA

DEFINITION of 'Patent Share'

The percentage share of a universe of patents owned or created by one subset of that universe. This term usually applies to a comparative share between nations. Patent share has been subdivided not only across nations, but within industry groups and even in companies relative to each other. Patent share is becoming increasingly important to competitive advantage as the applicability of patents extends into information processes, computer software, chemical formulas and other intangibles.

INVESTOPEDIA EXPLAINS 'Patent Share'

For example, the United States had a worldwide patent share of 43% as of 2003. The United States Patent & Trademark Office (USPTO) keeps track of the percentage of new patent issues that belong to every country on the globe, as well as the ratio of company-owned patents to those held by individuals.

By examining industries that are growing their market shares in patent discoveries, investors can get a sense of the health and vibrancy of an industry. Industries such as technology, biotech and pharmaceuticals have seen the largest share gains in the past decade; they also show the highest annual growth rates.

RELATED TERMS
  1. Letters Patent

    A legal instrument that grants the exclusive rights of an invention ...
  2. Patent Troll

    A derogatory term used to describe people or companies that misuse ...
  3. Intangible Asset

    An asset that is not physical in nature. Corporate intellectual ...
  4. Patent

    A government license that gives the holder exclusive rights to ...
  5. Trademark

    A symbol, word, phrase, logo, or combination of these that legally ...
  6. Patent Reexamination

    A process conducted by the U.S. Patent and Trademark Office (USPTO) ...
Related Articles
  1. Great Company Or Growing Industry?
    Markets

    Great Company Or Growing Industry?

  2. Patents Are Assets, So Learn How To ...
    Investing Basics

    Patents Are Assets, So Learn How To ...

  3. What is an economic moat?
    Investing

    What is an economic moat?

  4. What is the difference between an industry ...
    Investing

    What is the difference between an industry ...

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center