Patent Citations as an Indicator of M&A Feasibility
ETRC (Emerging Technology Research Center: http://etrc.co.kr/main/) in S. Korea
reported an interesting research result that the number of citations cited by
examiner can be a good indicator of M&A feasibility. In its case studies for
the acquisitions of IT start-ups, ETRC found that many global IT companies’ patents
heavily cited the patents of acquired IT start-ups.
NFC patents research (ref. http://techipm-innovationfrontline.blogspot.com/2015/03/nfc-patents-for-standards-applications.html)
also confirm the usefulness of ETRC’s
method for finding a potential M&A target. Broadcom acquired UK-based NFC
company “Innovision Research & Technology” at $47.5 M. According to the
USPTO assignment search, Broadcom acquired 48 US patent applications and issued
patens though the acquisition deal (ref. http://assignment.uspto.gov/#/assignment?id=32400-673&q=7881665).
TechIPm could verify that Broadcom’s patents heavily cited the patents of Innovision
Research & Technology.