IBM grapples with unprecedented patent decline
The shifting tech landscape is seen as the prime reason
In a surprising turn, IBM, a longstanding leader in patent acquisition for the past 29 years, is facing a significant setback as its patent filings witnessed a sharp decline of 60% over the past two years, as reported by Stocklytics.com.
This decline coincides with a strategic shift in the tech industry, where major players like Samsung and TSMC are redirecting their focus towards artificial intelligence (AI) and machine learning.
As these giants embrace cutting-edge technologies, IBM is finding it challenging to maintain its historical dominance.
Financial analyst Edith Reads from Stocklytics.com stated the importance of adapting to a new culture of open innovation in today’s dynamic technology landscape.
However, she warns that IBM’s pursuit of open innovation may have inadvertently contributed to the reduction in its patent numbers.
Gross danger
If not carefully managed, this approach could compromise the competitive advantage that IBM has meticulously built.
While collaboration fosters creativity and accelerates innovation, striking a balance is essential to protect IBM’s long-term growth trajectory and shareholder value.
The surge in patent applications across the tech sector since the onset of the pandemic in 2019 indicates a renewed commitment to innovation.
However, the actual number of patents granted tells a different story, experiencing a decline of 3.4% in 2023, with only 312,095 patents granted.
Once the undisputed leader in patent acquisition, IBM has been surpassed by formidable competitors such as Samsung, Qualcomm, and TSMC.
Samsung at the top
In 2022, Samsung claimed the top spot with an impressive 6,248 patents, while IBM secured 4,383 patents. However, by 2023, IBM’s patent count dwindled further, pushing the company to fourth place.
As IBM navigates this challenging landscape, industry observers are keenly watching how the tech giant will adapt its strategies to regain its patent prowess and compete effectively in the rapidly evolving world of technology.
It was established in 1911 as the Computing-Tabulating-Recording Company (CTR) and was renamed International Business Machines (IBM) in 1924.
IBM pioneered early tabulating machines, crucial for data processing. Throughout the 20th century, IBM played a pivotal role in computing advancements, introducing iconic products like the System/360 mainframe in the 1960s.
The company embraced innovation, contributing to the development of personal computers in the 1980s. IBM’s commitment to research and development led to artificial intelligence and quantum computing breakthroughs.
Featured image: As competitors embrace cutting-edge technologies, IBM is finding it challenging to maintain its historical dominance. Image: IBM
