The big5 patents report

THE ‘BIG 5’ PATENTS REPORTPatent activity and trends across Amazon, Apple, Facebook, Google,

and Microsoft

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Executive summary

Overall trends

Aggregate themes

Individual company analysis

Amazon

Apple

Facebook

Google

Microsoft


TABLE OF CONTENTS

EXECUTIVE SUMMARY


OVERALL PATENT ACTIVITY FROM BIG 5 COHORT ON

THE RISE

Applications trend upwards: Collectively, these IP powerhouses

have applied for more than 52,000 patents since 2009. Total

applications have steadily risen as each company diversifies its

research activities, with annual combined applications nearing

10,000 in 2013.

Microsoft leads, Facebook lags: Microsoft has filed for the most

patents, applying for over 16,800 since 2009, with second-place

Google applying for more than 14,500. Apple was in 3rd and

Amazon 4th, with Facebook lagging significantly behind.

Grants also rising: Although somewhat dependent on the USPTO

approval process, annual grant publications for this cohort have

also consistently grown. Google is now surpassing Microsoft for

the top spot here in part thanks to the reversal of its anti-patent

stance early in the decade.

INDIVIDUAL PATENTS REVEAL BROAD INTERESTS IN AI,

AR/VR, AND VEHICLES

AI activity skyrockets: 2014 applications with AI-related keywords

have already set an annual record, with more applications likely to

be published. Microsoft leads with Google quickly rising in second,

while Apple lags all of its peers thus far.

Facebook picking up: Although behind the other four in overall

filings, its activity is on the rise and recently published applications

reveal its efforts to automate the removal of objectionable content

using machine learning.

Apple targets vehicles, wearables: Apple came in second behind

Google in our keyword analysis of vehicle-related tech. Individual

filings point to research in autonomous vehicles and AR/VR.

Amazon broadens activities: The e-commerce company has

moved from consumer devices like e-book readers and tablets to

drones, cybersecurity, and potentially tech to support its Go stores.

Overall TrendsPATENT APPLICATIONS & GRANTS


Amazon, Apple, Facebook, Google, and Microsoft have applied for over

52,000+ PATENTSsince 2009


35

65

51

02

70

31

94

57

98

04

92

30

61

40

22

21

2009 2010 2011 2012 2013 2014 2015 2016

Total applications (AAPL, AMZN, FB, GOOG, MSFT)

to date

PATENT APPLICATIONS

MARCH UPWARD

Collective patent

applications from these technology giants has consistently risen on an

annual basis, as each company broadens the scope of its research

activities.

Combined applications neared 10,000 in 2013; more recent years may

exceed that threshold as more patents are published.


OVERALL PATENT APPLICATION ACTIVITYBy date of application, 2009 - 2016 YTD (12/12/16)

245

535659

9541073

988

517

215

994

13781497

2391

2097

2468

1917

678

40100

211

461 432

660

420

184

556

792

2165

3355 3371

2403

1365

589

1730

2297

2499

2296

28312711

1921

555

2009 2010 2011 2012 2013 2014 2015 2016

Amazon Apple Facebook Google Microsoft

to date

MSFT, GOOG, AAPL

AMONG MOST ACTIVE

Microsoft began the

decade with the most patent applications by a wide margin, but patent

applications from Google and Apple have skyrocketed since.

Google’s activity

dramatically increased from 2011-2013 as the company reversed its

early anti-patent bias.


PATENT APPLICATION ACTIVITY BY COMPANYBy date of application, 2009 - 2016 YTD (12/12/16)

16,840 14,596 13,420 5,186

2,508

By date of application, 2009 – 2016 YTD (12/12/16)

CUMULATIVE APPLICATIONS BY COMPANY


37

69

44

48

37

68

55

00

75

19

90

13

96

79

10

54

9

2009 2010 2011 2012 2013 2014 2015 2016 YTD

Total grants published (AAPL, AMZN, FB, GOOG, MSFT)

GRANT COUNT RISE

REFLECTS APPLICATION UPTICK

The growing number of

patents applications from this cohort is beginning to surface in publication of

granted patents figures as well.

Total grants published for the group has topped

10,000 for the first time in 2016 to date.


OVERALL PATENT GRANT ACTIVITYBy date of grant publication, 2010 - 2016 YTD (12/12/16)

65139

193306

550

757

1153

1635

399

721805

1290

1951

2184 2130

2414

7 850

130291 387 432

146

277415

1060

1852

2638

3307 32483159

3304

2347

2794

30363143

27022820

2009 2010 2011 2012 2013 2014 2015 2016 YTD

Amazon Apple Facebook Google Microsoft

GOOGLE TAKES THE

LEAD IN GRANTS PUBLISHED

Google’s flurry of early-to

mid-decade application activity has led it to top Microsoft in grants

published from 2015 on.

With the exception of Microsoft, patent publications are trending

upward across our big 5 cohort.


GRANT PUBLICATION ACTIVITY BY COMPANYBy date of grant publication, 2010 - 2016 YTD (12/12/16)

Aggregate themesEXPLORING TRENDING TECH AREAS


16 21 18 25 21

70

27

6

22 14

1741

25

39

16

4

3

11

18

4

1

4

3

1

15

7

6

5

6

3

1

2009 2010 2011 2012 2013 2014 2015 2016

Microsoft Google Amazon Facebook Apple

MICROSOFT, GOOGLE

DOMINATE AI PATENTS

Activity has sharply

increased in the key battleground of AI and machine learning

technologies.

Microsoft leads the pack with over 200 related patent applications since

2009, while Google comes in second with over 150. Apple, criticized

for being slow to the draw in this field, comes in last.


ARTIFICIAL INTELLIGENCE PATENT APPLICATION ACTIVITYBy date of application, 2009 - 2016 YTD (12/12/16)

Analysis filters patent titles and abstracts for select relevant keywords, e.g. machine learning, deep learning, neural network, etc.Does not include pre-acquisition patent activity of purchased companies (e.g. DeepMind with Google)

to date

19

22

87 81

101

3628

41

3

1215

9

13

8

7 4

10

125

12

7

6

2 2

14

12

8

3

2009 2010 2011 2012 2013 2014 2015 2016

Google Apple Microsoft Amazon

GOOGLE APPLYING FOR

HUNDREDS OF VEHICLE PATENTS

With the Google Self-

Driving Car Project (recently launched as Waymo) long in gestation,

it’s not surprising that Google holds the crown.

Apple comes in second, while Amazon has also

applied for a handful of patents related to automated delivery

drones and warehouse vehicles.


VEHICLE TECH PATENT APPLICATION ACTIVITYBy date of application, 2009 - 2016 YTD (12/12/16)

Analysis filters patent titles and abstracts for select relevant keywords, e.g. autonomous driving, self-driving vehicle, etc.Does not include pre-acquisition patent activity of purchased companies

to date

6 8

17

33

23 2219

13

4

7

9

64 9

64

5

7

45 2

2

2

1

4 1

2

2009 2010 2011 2012 2013 2014 2015 2016

Microsoft Google Amazon Apple

MICROSOFT ALSO

TOPS AR/VR ACTIVITY

Thus far, patent

submission activity for AR/VR and related tech peaked in 2012.

Microsoft again leads the

way, driven by the development of the mixed reality HoloLens.

Microsoft also has number of patents related to its Kinect motion

sensing and gaming devices, which HoloLens traces its lineage to.


AR/VR PATENT APPLICATION ACTIVITYBy date of application, 2009 - 2016 YTD (12/12/16)

Analysis filters patent titles and abstracts for select relevant keywords, e.g. augmented reality, virtual reality, eye tracking, etc.Does not include pre-acquisition patent activity of purchased companies (e.g. Oculus with Facebook)

to date

Individual company analysisAREAS OF INTEREST & PATENTS OF NOTE



Amazon

24

5

53

5

65

9

95

4

10

73

98

8

51

7

21

5

2009 2010 2011 2012 2013 2014 2015 2016

Total applications

to date

AMAZON RISING

CONSISTENTLY FROM 2009 ON

The Seattle giant’s patent

activity has rocketed as it pushes beyond core e-commerce into cloud

services, hardware, B&Mretail, and so on.

Amazon’s annual patent applications more than

quadrupled from 2009 to 2013.


AMAZON PATENT APPLICATION ACTIVITYBy date of application, 2009 - 2016 YTD (12/12/16)

AMAZON’S INTERESTS

BROADEN BEYOND

Amazon’s top keywords

represent a shift in focus from core e-commerce competencies like product

recommendation to developing its Kindle line and other consumer

devices (red) as well as delivery drones (orange).

As AWS has risen in prominence, the frequency

of cybersecurity keywords has also spiked (light blue).


AMAZON TOP PHRASES BY SIGNIFICANCEBy date of application, 2009 - 2016 YTD (12/12/16)

2009 2010 2011 2012 2013 2014 2015 2016

electronic reader resource resource resource resource inventory resource resource

computer

networknode client client provider resource client authentication

reader device user device network page image image image provider virtual machine

phrasevarious

embodimentprovider provider client electronic device

computer

networkprovider

reader clientvarious

embodimentuser device node tablet

various

embodimentclient

node provider image component inventory fluid instance policy

network site virtual machine electronic devicevarious

embodimentinstance instance inventory

various

embodiment

client network page user device recommendation server providerunmanned

vehicle

computer

network

virtual computer recommendation instance environment computing palette node replica

adapter book inventory inventoryvarious

embodimentholder container service provider

server electronic book server server environment client configuration execution

environment instance digital work power object container component computing

resource delivery content item element control virtual machine bincryptographic

key

delivery catalog host objectcomputer

systemcolor palette vehicle instance

ISOLATING SPECIFIC

USERS

This filing relates to the

identification of a specific user in a crowd by comparing a physiological

conditions across individuals (e.g. heart rate).

This patent describes a device use case, but

similar technology could hypothetically be employed to track

shoppers in Amazon’s recently-announced, highly automated Go stores.


AMAZON PATENTS OF INTERESTExample 1: “Detecting the primary user of a device”

Application date: 6/7/2015Publication date: 12/8/2016

AUTOMATING

SHOPPING PROCESSES

Regarding Amazon Go, the

company also applied for a patent describing the identification and tracking

of user-picked items from a “materials handling facility.”

Interpreted in the context

of Amazon Go, this research could be used to track each shopper’s

shopping cart in an automated store.


AMAZON PATENTS OF INTERESTExample 2: “Transitioning items from a materials handling facility ”


WAREHOUSING

AUTOMATION ALSO A FOCUS

Amazon is known for its

drive to maximize efficiency in its warehouses and fulfillment centers, often

leveraging automation (e.g. with its acquisition of Kiva Systems).

The company has applied

for a number of robotic packaging and inventory management systems.


AMAZON PATENTS OF INTEREST


Example 3: “Generating robotic grasping instructions for inventory items ”


Apple

99

4

13

78

14

97

23

91

20

97

24

68

19

17

67

8

2009 2010 2011 2012 2013 2014 2015 2016

Total applications

to date

APPLE’S

APPLICATIONS RISING AFTER DIP IN 2013

Cupertino’s annual

application count fell in 2013 but seems poised to resume an upward trend

as the company continues pushing into new fields such as

wearables and vehicles.


APPLE PATENT APPLICATION ACTIVITYBy date of application, 2009 - 2016 YTD (12/12/16)

APPLE WEARABLE

PUSH EVIDENT

Many of Apple’s top

phrases reflect its core device and hardware businesses.

However, more recent

years reveal Apple’s emphasis on wearable development (orange),

especially as the Apple Watch has come to market.


APPLE TOP PHRASES BY SIGNIFICANCEBy date of application, 2009 - 2016 YTD (12/12/16)

2009 2010 2011 2012 2013 2014 2015 2016

electronic

device

electronic

device

electronic

device

electronic

device

electronic

device

electronic

device

electronic

device

electronic

device

medium device display screen medium device display screen display screen graphical user wearable device layer

portable

computerscreen packaging screen screen display screen display screen adapter

image graphical user memory graphical user graphical user screen screen mobile device

connector icon image image connector wearable deviceband

attachmentscreen

dock insert packaging station connector housing connector graphical user substrate

power housing keyboard structure layer layer attachment housing

stand cover graphical user cover image component layer wireless

circuit station connector power memory housing connector cover

keyboard power circuit circuitthereof with

iconpower component component

packaging image screenthereof with

iconsignal circuit structure communication

dock portable display display screen adapter circuit packaging power circuit

APPLE’S VEHICLE

RESEARCH

Though Apple has lagged

somewhat in overall AI research, recent reports have detailed the

expansion of its machine learning efforts.

Apple’s long-rumored automotive project has

said to have shifted focus from developing an actual vehicle to developing a

self-driving system instead.


APPLE PATENTS OF INTERESTExample 1: “Collision avoidance of arbitrary polygonal obstacles”


INDOOR NAVIGATION

FOR POTENTIAL AR/VRUSE CASES

Another recently

published Apple patent involves precisely mapping and navigation

indoor environments.

As the patent’s description notes, such capabilities would be

useful not just for smartphones, but also “smart glasses and other

devices.”


APPLE PATENTS OF INTERESTExample 2: “Visual-based inertial navigation”



Facebook

40 10

0

21

1

46

1

43

2

66

0

42

0

18

4

2009 2010 2011 2012 2013 2014 2015 2016

Total applications

to date

FACEBOOK PATENT

ACTIVITY BEGINNING TO PICK UP

Of this cohort, Facebook

is notably less active from an intellectual property standpoint.

However, it has recently

begun to submit more applications, with its 2014 applications already

marking an annual record, even with more patents (likely) awaiting

publication.


FACEBOOK PATENT APPLICATION ACTIVITYBy date of application, 2009 - 2016 YTD (12/12/16)

TACKLING SUSPECT

CONTENT: FAKE NEWS?

Since the 2016 US

presidential election, Facebook has faced increasing criticism for

“fake news” on it platform.

Recently published patents reveal efforts to leverage machine learning

to automate the flagging and removal of objectionable content

dating back to 2015.


FACEBOOK PATENTS OF INTERESTExample 1: “Systems and methods to identify objectionable content”


OCULUS FORGING

AHEAD

Oculus’ VR patents are

still filed under the Facebook subsidiary itself rather than the corporate

parent.

A number of recently published documents reveal work in hand-held

VR controllers, likely for the development of Oculus’ just-launched

Touch controllers.


FACEBOOK PATENTS OF INTERESTExample 2: “Hand-held controllers for virtual reality system”



Google

55

6

79

2

21

65

33

55

33

71

24

03

13

65

58

9

2009 2010 2011 2012 2013 2014 2015 2016

Total applications

to date

GOOGLE BECOMES IP

POWERHOUSE

Google executives (up to

Larry Page and Sergey Brin) were once infamous for opposing excessive

patenting as a threat to innovation.

However, as the threat of smartphone litigation

intensified in the early 2010s, Google began applying for patents at a

blistering pace.


GOOGLE PATENT APPLICATION ACTIVITYBy date of application, 2009 - 2016 YTD (12/12/16)

2009 2010 2011 2012 2013 2014 2015 2016

image document search image image image display device search

document query document search searchwearable

displayimage image

search search query document query vehicle search vehicle

query image image query content item display device query balloon

score server server server document search glass query

server score clientwearable

display

computing

devicecontent item graphical user content item

program program programcomputing

devicevehicle computer icon content item notification

client client web content item computing message vehicle graphical user

computer

program

computer

programmobile device score score document

computing

device

computing

device

communication message object vehicle mobile devicecomputing

devicecomputing user device

content item resource value client graphical user query communication communication

advertisement advertisement computing computing server display panel screen hotword

TOP GOOGLE

KEYWORDS HIGHLIGHT X PROJECTS

Advertising (light blue)

has fallen off the top keyword list as Mountain View seeks to diversify.

Highly visible are

keywords related to X “moonshot” projects, including self-driving cars

(red), Google Glass and wearables (orange), and Project Loon’s internet

delivery balloons (blue).


GOOGLE TOP PHRASES BY SIGNIFICANCEBy date of application, 2009 - 2016 YTD (12/12/16)

SELF-DRIVING CAR

PROJECT MATURING

Google’s Self-Driving Car

Project has “graduated” from beta and become the new full-fledged

Alphabet company Waymo.

This just-published application describes the

mechanisms to both initiate a ride and trigger an emergency stop, either

through input buttons in an autonomous car or other devices.


GOOGLE PATENTS OF INTERESTExample 1: “Autonomous vehicles”


AR/VR RESEARCH

REMAINS STRONG AS WELL

Despite the failure of

Google Glass to generate significant traction, the company’s patent outputs

reflect the various augmented and virtual reality projects that it is

still pushing forward.


GOOGLE PATENTS OF INTERESTExample 2: “See-through eyepiece for head wearable display”



Microsoft

17

30

22

97

24

99

22

96

28

31

27

11

19

21

55

5

2009 2010 2011 2012 2013 2014 2015 2016

Total applications

to date

MICROSOFT HOLDING

STEADY

Out of this tech cohort,

Microsoft’s patent application totals have been the least volatile.

Despite a corporate

restructuring in 2013 and an executive transition in 2014, the company’s

overall research activity has remained strong.


MICROSOFT PATENT APPLICATION ACTIVITYBy date of application, 2009 - 2016 YTD (12/12/16)

NEW MICROSOFT

HARDWARE COMES INTO FOCUS

Microsoft’s patent

keywords provide an early glimpse into the development of the

Surface tablet lines (orange).

The “headset” and “visor” patents (light blue)

highlight the ramp-up of Microsoft’s efforts in the AR/VR space seen earlier,

specifically its HoloLens headset.


MICROSOFT TOP PHRASES BY SIGNIFICANCEBy date of application, 2009 - 2016 YTD (12/12/16)

2009 2010 2011 2012 2013 2014 2015 2016

display screen display screen display screen display screen display screen display screen display screen message

screen screen screen screen screen screen screen communication

icon icon graphical user graphical user graphical user graphical user graphical user component

image image iconscreen with

icon

screen with

iconhandset controller document

keyboardelectronic

mouse

screen with

iconicon icon image

screen with

iconserver

object document image image handset document icon environment

avatar query objectelectronic

cameraimage

screen with

iconheadset query

component search query object search communication visor object

clientelectronic

camerasearch

electronic

mousetype font client document file

server mouseelectronic

mousesearch headset icon client computing

file message server input deviceelectronic

tabletenvironment communication peer

gesture resource controller document client computing elementcomputing

device

player component headsetelectronic

tabletdocument resource message resource

resource value resource environment controller moduleheadset with

visorgesture

MICROSOFT CONTINUES

NATURAL LANGUAGE WORK

One new patent

application details Redmond’s efforts to facilitate natural language

conversations by personalizing virtual assistant responses.

This would bolster

Microsoft’s Cortana assistant and potentially chatbots for its

productivity software.


MICROSOFT PATENTS OF INTERESTExample 1: “Crafting feedback dialogue with a virtual assistant”


WEARABLES STILL ON

THE RADAR

Microsoft may still be

interested in wearables and smartwatches despite the discontinuation of its

Band fitness wearable, as the company recently filed a patent detailing a new

wearable device and corresponding dock.


MICROSOFT PATENTS OF INTERESTExample 2: “Wearable personal information system”


A word on the nature of patents analysis


The patent filing and grant process involves several key dates

with significant time lags in between (see the graphic to the right).

After an application is submitted, there is a delay before it is

published. This lag is typically 12-18 months but can range from

several months to over two years.

The delay before the publication of granted (approved) patents is

even more variable; occasionally decades can pass before grants

are published.

Applications and grants cannot be captured for analysis until they

are published, so these time lags are important to keep in mind.

Note: Our analysis focuses on patents filed or granted directly under each company’s

name, although this may still include a small number of patents from acquired

companies attributed to their parent.

Application filed(Application date)

Application published(App publication date)

Grant published(Grant publication date)

typically 12-18 months

typically several years, but can take decades

TYPICAL PATENT PROCESS

http://appft1.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PG01&p=1&u=/netahtml/PTO/srchnum.html&r=1&f=G&l=50&s1=20160252905.PGNR.&OS=DN/20160252905&RS=DN/20160252905

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Transcript of The big5 patents report