Large Patent Portfolio Optimization: Master's thesis

This master's thesis studies the systematic management and optimization of large patent portfolio. The objective is to explore the main characteristics of large patent portfolio management and to create systematical logic for the selection and management processes. The created logic will also be tested in a practical case. The study is constructive and it is conducted as an action research. It combines both qualitative and quantitative data. The main emphasis of the research is the computational management of patents as a portfolio. The questions concerned are business decision making choices and the study doesn't cover questions like the exact valuation of a single patent or patent portfolio. The studied industry assumed to be the electronic and telecommunication industry. First, the study explores the management of patents as a whole. Subsequently, different mathematical and computational methods are explored to understand, what kind of model and algorithm is needed. A model for managing patents computationally is presented as well as an algorithm for defining which patents should be studied for the decision of discarding them. The procedures also help to evaluate, which parts of the portfolio need additional investments. Finally, the study and assumptions beneath are discussed. The study contributed to the existing knowledge by studying the factors affecting decisions about large patent portfolios and presented a model for the discarding process. It helps the managerial practices by listing the possible patents that could be further studied for discarding decisions. Additionally, it can help to justify the decisions of adding, keeping and discarding patents.