The Photovoltaics Patent Landscape and How to Commercialise IP

Photovoltaics & IP

Timothy Butler – Technology AnalystEmail: [email protected]

http://www.clearviewip.com/

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© ClearViewIP Ltd 2013. All rights reserved.

Volume of PV Patent Applications

• Huge volume of patent filing in the field

• Keyword search for solar or photovoltaic returns over 180,000 results

• This report uses a more focussed keyword search to just look at photovoltaic modules

• Filing has increased rapidly both in real and absolute terms

• Filing follows a similar trend to installation rates up to 2010



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Geography of PV patent filings

• Japan dominated patent filings for the majority of the technologies history but has recently been overtaken by the US, China and Korea

• No real correlation between patent filing and PV installation



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PV Manufacture

Share Price

• Correlation between Japan’s decline in patenting activity and manufacturing dominance

• The reverse correlation is not however seen for the US



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Top Patent Owners

• Canon Sharp and LG the top three

• High proportion of Japanese companies (though some of their patents may have lapsed)



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Top PV Module Producing Companies2011

Rank

Company Number of solar

related granted

patents

Number of solar

related patent

applications

1 First Solar Inc. 86 510

2 Suntech 62 199

3 Yingli Solar Co Ltd 10 117

4 Trina Solar Ltd 60 267

5 Canadian Solar Inc. 5 33

6 Sharp KK 807 2667

7 Hanwha Solarone 10 23

8 Jinko Solar Co Ltd 1 12

9 LDK Solar 10 74

10 Solarworld 115 246

• Only Sharp and First Solar feature in top 20 patent holders and top ten module suppliers

• Some of the top manufacturers have very small patent portfolios, even using a very broad search criteria

• These small portfolios are in some cases contain only Chinese grants



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Does this lack of patents matter?

Yes…

• Clearly the companies think it matters as they are trying to expand their portfolios

– High volume of applications relative to grants

– Attempts to buy up patents from Evergreen Solar and Solyndra

No…

• There has been little patent litigation in the industry

• The industry has bigger problems



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Why have there been few litigation cases?

• The technology is mature

– Vast majority of products based on mono or polycrystalline silicon

– Changes are incremental

– Key patents were filed in the 70s/80s, have now expired

– What litigation there has been has focussed on enabling technologies (e.g Westinghouse vs Zep Solar)

• The market has become commoditised

– Economic factors have greater influence than incremental technological advances


Patent Filings by Technology Area


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• Relatively small proportion of patenting activity relates to “conventional” solar cells

• High and increasing proportion related to “second generation” technologies such as polymer and dye sensitised



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Possible Future Scenario…

• Second generation solar cells become commercially viable

• May allow industry to move away from dependence on fiscal policies

• Remains to be seen who will hold the key patents

• Huge amount of investment in patents, and an opportunity for a smaller number of players to dominate the market, so key patent holders are likely to want to defend their rights

• Hence we may see an increase in patent activity and litigation


How to Commercialise IP

Benoit Geurts – Senior ConsultantEmail: [email protected]


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Founded 2007

Extensive commercial and IP experience

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“ClearViewIP is an Intellectual Property Consultancy providing a range of services to help companies monitor, expand , exploit and better understand their IP

portfolio and its position within the industry”



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PV/Solar – Challenging Times

• Challenging time for PV industry- High debt- Low or negative margin- Consumer relying on subsidy

• Many companies are struggling

• Not enough cash for R&D

• Patent commercialisation opportunities- Loan against IP, sell and back license- Example - Jan 13, Fraunhofer ISE acquires 111 patent

families from Schott Solar. (undisclosed amount)- Licensing



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Technology Commercialisation

Commercialisation:

License out

License In

Collaborate

Acquisitions

Auctions

Sales

Benefits:

Raise Capital

Transfer Risks

Reduce cost

Brand association



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Technology Start Up Company

• Base technology– 1 or 2 patents

• Market opportunity– Not always quite as expected

• Business develops– Are products or services still in scope of patents?

– Is anyone waiting to strike?



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IP Health Checks

• Innovation

– Do new developments match current business?

• Is the business still aligned with early patents?

• Revisit the landscape with focus on where actual business is now

• Are you still in scope of original patents ?– Are any competitors ?

– Do you need to buy ?

– Any new threats ?



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Divergence

1 23

Company

products &

servicesPatents Patents

Company

products &

services Patents

• With growth, patents may become less well aligned

• License / sell original core patents?

• Acquisition to realign with new company focus?

Company growth over time



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Selling vs. Licensing

• Assignment = sale = transfer of total ownership

• Permanent, irrevocable

• Revenue through lump-sum payment

• Often gives free back license

• 6 mths for deal

• Not so dependent on market take-up

• Need infringement potential

• May bring lower income but a bird in the hand…

• Licence = contract granting exploitation rights

• Can be sole, exclusive, non-exclusive

• Can have minimum performance targets –revocable

• Can be limited to a period of time or geography or field of use

• Revenue through royalties

• Need know-how

• 18-24mths for deal

• Potentially larger total income but more risky (obsolescence)

Patent Sale Patent Licensing



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