Patent Portfolio Level Quality Indicators

PORTFOLIO QUALITY INDEX (PQI = 90th PERCENTILE of 360Q score) – for a Portfolio of patents

Portfolio Quality Index for a portfolio is derived by calculating the 90th percentile value over the patent family scores for all the families present in the portfolio. (This is neither the average nor the median value but is the value above which the top 10% of the patents in the portfolio fall.) It is a known fact that 10% of the top patents hold maximum value in a company’s portfolio and the distribution of patent value across any given portfolio follows a log-normal distribution pattern. So, the 90th percentile gives a good indication of where the most valuable patents within the portfolio fall.

PQI helps in identifying smaller high-value portfolios in a dataset where they would otherwise be missed out due to a higher count of families held by the bigger players.

PORTFOLIO VALUE INDEX (PVI = Σ 360Q SCORE) – for a Portfolio of patents

The Portfolio Value Index is the sum of the 360Q scores of all the families present in the portfolio. As expected, larger portfolios will tend to have a higher Portfolio Value Index. This score is particularly useful to see the growth of the portfolio quality over time.