Posts Tagged: "Facebook patents"

Although the patent space surrounding VR headsets still looks very open, it’s interesting to note that Nintendo has an early lead over other top tech firms which have reportedly been working on their own virtual reality technologies. Fourth place in the VR headset space is Microsoft Corporation (NASDAQ:MSFT) which owns nine IP assets in the sector. This total seems low given Microsoft’s work on developing its HoloLens mixed reality platform. Trailing closely behind in fifth place is Alphabet Inc. (NASDAQ:GOOGL) with seven IP assets in the sector. Again, given research and development conducted by Alphabet’s Google subsidiary for its Google Glass head-mounted device, it’s interesting to see that the company hasn’t invested heavily in the virtual reality headset space. Following further behind in seventh place is Japanese electronics conglomerate Sony Corp. (NYSE:SNE). Tied in eleventh place are Intel Corp. (NASDAQ:INTC) of Santa Clara, CA, and the Walt Disney Company (NYSE:DIS) of Burbank, CA.

In terms of sheer numbers, in the CB Insights study, which curiously did not include patent giant and American research juggernaut IBM, Microsoft ranks supreme among this collection of five major tech firms. The Redmond, WA-based hardware and software developer has applied for a total of 16,840 patents over the seven years of the study. In second place is Google with 14,596 patent applications over the same time period. Although exact numbers for the other three firms weren’t publicly released by CB Insights, these two firms are followed by Apple (13,420 patent applications), Amazon (5,186) and Facebook (2,508), respectively. Collectively, these five companies have been pushing towards a total of 10,000 patent applications filed per year. This trend marks a sharp rise in patent application filing activities among the Big 5, which filed 3,565 patent applications collectively in 2009.

Facebook’s mobile advertising numbers were so good that its entire advertising revenue stream surged ahead 57 percent when compared with 2015’s first quarter, up from $3.31 billion to $5.2 billion. Advertising is the major chunk of Facebook’s revenues and the company’s $5.38 billion first quarter revenues were 50 percent greater than its revenues during 2015’s first quarter. It’s also interesting to note that Facebook has increased quarterly research and development expenditures to $1.34 billion in 2016’s first quarter, up from $1.06 billion during last year’s first quarter. Since the beginning of this year, Facebook has received 13 patent grants from the U.S. Patent and Trademark Office related to advertising; the company has also had another 32 patent applications related to ads published so far this year. A look at the text cluster, made available through Innography’s patent portfolio analysis tools, shows readers that Facebook is designing ad services incorporating social graphs, targeting criteria and media content.

Anyone who already feels like social networks collect too much personal data may not be happy to find out about the invention protected by U.S. Patent No. 9118725, issued under the title User Activity Tracking System. The method claimed here involves receiving sensor signals from a client device which correspond to motions of the client device, determining an activity of the user by associating sensor signals with activity periods comprising a geographic location and selecting activity types corresponding to each activity period. This invention is designed to better determine the exact sports activity in which a user is engaged.

Both Facebook and Twitter will need to grow up and mature as companies if they are going to succeed for the long haul. A review of the patent portfolios suggests that Facebook has a much greater chance of ultimately succeeding because it seems to have a much more developed patent strategy than Twitter, which afford the company a larger number of monetization opportunities… Without a thoughtful strategy to protect the innovations they create they are leaving money on the table. It was one thing to make ideological decisions when the company was private, but publicly traded companies really need to answer to shareholders, at least in theory. Twitter’s continued allergy to filing patent applications may well come back to haunt the company, which has already seen its first quarter of declining usage.