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NEW YORK, 15 June 2023: A new report from UnitedLex, a data and professional services company, has found that the cost of patent maintenance for electric and autonomous vehicles is set to triple over the next five years.
Patent Insights from Times of Industry Transformation
The report, titled “Patent Insights from Times of Industry Transformation,” analyzed the patent portfolios of 30 top automakers and found that they are facing increasing costs as they transition to a new era of automotive technology.
The report found that the cost of maintaining patents in the battery and charging category is expected to increase by 150% over the next five years, while the cost of maintaining patents in the autonomous driving category is expected to increase by 200%. The report also found that the cost of maintaining patents in the internal combustion engine category is expected to decline by 50% over the next five years.
The report’s findings suggest that automakers are facing a significant challenge as they transition to a new era of automotive technology. The rising cost of patent maintenance is one of the many challenges that automakers are facing as they move towards electric and autonomous vehicles.
Key Findings for electric and autonomous vehicles
- The cost of patent maintenance for electric and autonomous vehicles is set to triple to USD 100m annually over the next five years.
- Large OEMs and suppliers can use patent lapsing strategies to save 20-30% per year in renewal fees.
- Toyota, Ford, GM, and Hyundai are facing a sharp increase in portfolio costs due to their heavy investment in autonomous and advanced driver-assistance systems (ADAS) patents.
- OEMs and suppliers lapse on average 10% at Gate 1, 25% at Gate 2, and 38% at Gate 3.
- A noticeable gap in spending versus potential savings exists for companies that lapse below the average at Gates 2 and 3.
- Nearly all OEMs have lapsed Engines & Emissions patents at higher rates in recent years, showing a declining prominence of the internal combustion engine.
Recommendations
- Automakers should closely monitor their patent portfolios and ensure that they are aligned with their strategic goals.
- Automakers should consider using patent lapsing strategies to save money on patent maintenance costs.
- Automakers should collaborate with other automakers and suppliers to share patent costs.
Conclusion
The rising cost of patent maintenance is a significant challenge that automakers are facing as they transition to a new era of automotive technology. Automakers need to take steps to mitigate the impact of this challenge, such as closely monitoring their patent portfolios, using patent lapsing strategies, and collaborating with other automakers and suppliers.
