Patent Share

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.

BREAKING DOWN '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. Medical Patent

    A legal protection against market competition that a government ...
  2. Patent

    A government license that gives the holder exclusive rights to ...
  3. Patent Agent

    A professional licensed by the United States Patent and Trademark ...
  4. Patent Reexamination

    A process conducted by the U.S. Patent and Trademark Office (USPTO) ...
  5. Design Patent

    A patent protecting the unique visual qualities of a manufactured ...
  6. Field Of Use

    Restrictions that are placed on a license granted for the use ...
Related Articles
  1. Investing Basics

    Patents Are Assets, So Learn How To Value Them

    Innovation is the key to staying on top. Find out how companies protect their ideas and how to figure out how much they're worth.
  2. Investing

    Hiring A Really Competent Patent Attorney

    Use this guide to find a well-qualified attorney to guide your application through the complex patenting process at the best possible price.
  3. Investing

    Protecting Your Idea: Should You Patent It?

    At what stage of development should you patent an idea – and which ideas can you patent? Here's how to decide and what to do next.
  4. Investing

    Filing A Patent

    Want to patent your invention or design? Here's a complete step-by-step guide to the process.
  5. Investing Basics

    Who Are Patent Trolls & How Do They Work?

    Patent trolls are in the business of patent litigation, enforcing their patent rights against alleged infringers through license fees and lawsuits.
  6. Investing

    What's The Cost To File A Patent?

    When filing a patent, be ready to pay attorney fees, filing fees and other related expenses. Usually the total bill is a few thousand dollars.
  7. Fundamental Analysis

    How Patent Trolls Hurt Competition

    Patent trolls are known to have a negative impact on the overall business ecosystem. Investopedia explores how.
  8. Investing

    Patents, Trademarks and Copyrights: The Basics

    The decision to pursue a patent, trademark or copyright depends on the type of intellectual property you’re trying to shield.
  9. Investing News

    Apple Loses To VirnetX In Patent Case

    Apple, Inc. loses a patent case to VirnetX Holding Corporation and needs to cough up $625 million.
  10. Entrepreneurship

    Protecting Your Idea From Angel Investors

    If you need outside financing to grow your business, be careful about whom you decide to talk to and what information you offer them.
RELATED FAQS
  1. Can you realize capital gains on intangible property?

    Learn more about capital gains and losses and how they may apply to intangible assets. Find examples of intangible assets ... Read Answer >>
  2. What types of companies have a high proportion of intangible assets?

    Explore what types of companies are most likely to have a high proportion of intangible assets, due to the nature of the ... Read Answer >>
  3. What are typical examples of capitalized costs within a company?

    Learn examples of capitalized costs such as expenses incurred to put fixed assets to use as well as software development ... Read Answer >>
  4. What are the major barriers to entry for new companies in the drugs sector?

    Find out why barriers to entry for U.S. drug companies are so high and how the Food and Drug Administration, or FDA, inhibits ... Read Answer >>
  5. What are some common examples of noncurrent assets?

    Learn more about noncurrent assets and examples of noncurrent assets, such as tangible fixed assets, intangible fixed assets ... Read Answer >>
  6. What do high economic profits in a given industry suggest about that industry?

    Learn how certain industries have high economic profits and what it says about those industries; the key is the industry ... Read Answer >>
Hot Definitions
  1. Physical Capital

    Physical capital is one of the three main factors of production in economic theory. It consists of manmade goods that assist ...
  2. Reverse Mortgage

    A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage ...
  3. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  4. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  5. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  6. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
Trading Center