Tuesday, January 24 2023   \  Published by Venner Shipley.

Patents and recessions – How to recession proof your patent portfolio

Patents and recessions – How to recession proof your patent portfolio

As the United Kingdom potentially teeters on the edge of another recession, many companies are considering their IP strategy for navigating the tricky economic times ahead. A history of recessions and patents It is no secret that recessions often lead to a decline in patent filings. Between 2008 and 2009 the number of patent applications received by the European Patent Office (EPO) fell by 8.2% (see Figure 1). 

However, a dip in filing numbers is usually short-lived and, if history is any guide, companies that invest in IP in a recession tend to come out the other side stronger than those who choose to wait for the economy to improve.

By way of case study, throughout the recession period of 2007 to 2009, Amazon’s stock declined, putting the company’s upward trajectory in doubt. While the financial crisis was hurting its competition, Amazon decided to double down on innovation. It launched a whole suite of new products: Amazon Prime, Amazon Kindle, and Amazon Web Services (AWS), its cloud computing arm. By 2009 Amazon’s profits were up 68%, and each of these introduced products has become a major part of the Amazon business we see today. Read more

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