ibm’s business, data and ip strategies in the era of ai ... · • even more important, nearly...

© 2018 IBM Corporation1

IBM’s Business, Data and IP Strategies in the era of AI and Cloud

Mark RingesVice President, Assistant General Counsel, IP Law, IBM Corporation

September 7th, 2018Policy Alternative Research InstituteUniversity of Tokyo


Today’s IBM: Built for smarter businesses• Inflection points

• This is not just an inflection point for IBM. It is also an inflection point for our clients—the enterprises and institutions of the world.

• IBM patent leadership is building the future for smarter businesses• IBMers received a record-breaking 9,043 U.S. patents during 2017—the 25th

consecutive year that the company has led the world.• Even more important, nearly half of IBM’s new patents are advancing AI, cloud

computing, blockchain, quantum computing, cybersecurity and other technologies that will change the way the world works—again.

• IBM is an enterprise technology company.

, 2 / 1/ 00 . 21,

2017 Annual Report


100%

1969Apollomission

1971Floppydisk

1973 UPCbarcode1973 ATM machines

1911Scales 1931

Translator system

1957FORTRAN

1928IBM 80 Column punchcard

1944Mark 1 calculator

1962 SABRE

1964System/360

1961Selectric typewriter

1993Blue Gene

1997e-business

2008SmarterPlanet

2011 Watson Jeopardy

2000eServer

1992IBMConsulting Group

2006Information Server

1996Net.

Commerce

1997DeepBlueWorld ChessChampion

1981 PC1981 ExcimerLaser Surgery

IBMRevenue

(%)

0%1960 20001980 2016

50%

Hardware

Services

Software

IBM has transformed - re-platformed - 4 times in the last 50 years

Mainframe Era PC Era Services Software


Traditional IT3-5% CAGR

Sources: ‘15-’16 Public Analytics estimates, IBM Market Development & Insights; IDC, Forrester, Gartner, McKinsey, Investment Bank Research, Company Reports

-

500

1,000

1,500

2,000

2,500

3,000

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31Hardware

Services

Software

On-Premises IT

Public Cloud

Private Cloud

Hybrid

Cloud platforms becoming 65% of IT market by 2020

Hardware

($B)

The traditional IT industry is re-platforming

’90 ’00 ‘10 ‘14 ‘20


5. Blockchain

3. Smart Security

1. Pervasive Cloud

“Next” HorizonsEdge ComputingQuantum ComputingPersonalization @ scaleNext gen: Man-Machine

4. Intelligence of Things (IoT)

New technologies are remaking the industry


-

500

1,000

1,500

2,000

2,500

3,000

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31Hardware

Services

Software

Hardware

($B)

2. AI Everywhere

’90 ’00 ‘10 ‘14 ‘20


75% of developers to embedcognitive into apps thru ’18 - IDC

Industry-focused cognitive/AItop investment by ’20 - IDC

A new form of competition:Cognitive Solutions, fueled by AI platforms.

Giving rise to new markets – and new platforms


-

500

1,000

1,500

2,000

2,500

3,000

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31

Hardware

Services

Software

Cognitive SolutionsExpansion of Traditional IT

MarketNew Markets

25% CAGR

($B)

’90 ’00 ‘10 ‘14 ‘20


0%

1960 20001980 2016

100%

50%

Hardware andsystems management

IBMRevenue

(%) Services

IBM’s Next era

50% of IBM Revenue shifting to Cloud and cognitive solutions

��

��

��

Cloud Platform


• Public Cloud getting more important

• Enterprise & consumer cloud very different

�� • From PoC to enterprise

transformation• Enterprise & consumer

AI very different• Enterprise applications

fueled by expert data

�� • Industry focused, high

value cognitive solutions, integrated with business data

0.00

0.25

0.50

0.75

1.00

1.25

1.50

1.75

56%

24%

20%

38%

28%

34%

Hybrid

Traditional IT Market ($T)

2017 2020

• For ALL your data (Hybrid)• AI-ready• Secure to the core

•

•

•

Bringing together innovative technology and industry expertise


• 25 consecutive years of US patent leadership• ~$1B annual IP income• Among most valuable brands worldwide

• Global IP policy leader• Worldwide, world-class technical and IP community• ~$6B annual investment in R&D

IBM IP Leadership


IBM’s IP Strategy

1. Provide Freedom of Action for IBM to innovate

2. Integrate IP into IBM’s businesses with a balance of unique value, standards, and collaborative innovation

3. Deliver IP value

4. Influence IP legislation and regimes

Deliver to our shareholders a superior return on their investments in innovation and intellectual property

IP value from:Innovation, Income, and

Influence

Business-based IP strategies

Patent leadershipPatent licensingAnti-NPE efforts

IP regime maturity for business value and

protection


Big Data and Analytics

Unique business value from analytics tools applied to data

Data Aggregation andAccess

Access to enterprise data

Rights to data and metadata are essential

Data Security and PrivacyIncreased need for trusted information, and data and information governance

Research and development of anonymization services

Managed Data Services

Disruptive shift in data andinformation management

Essential in the flow ofenterprise data

IBM Anonymous Resolution

New Data Business Imperatives derive from 1) Business Strategy 2) Client Engagements 3) Access to Data 4) Rights to �Internet� Data

Data – New Business/IP Strategies in Cognitive Era


Blockchain and Hyperledger

Hyperledger: building open source blockchain for business

Hyperledger Fabric driving innovation

Collaboration that’s driving business results

250+companies part of Hyperledger

159engineers working together

28organizations building HyperledgerFabric

3.6M+lines of code


TODAY FUTUREInefficient paper-based and manual

processes, Costly, VulnerableTransparent, Provenance management,

Tamper-proof, Consensus, Finality

Paperless and visualized trade processingSignificantly reduces the costs and lead time

for the global trade

Exporter Bank Insurer

Authority Authority

FreightForwarder

Carrier

Consignee

Terminal

Global Trade Digitization

Exporter Bank Insurer

Authority Authority

FreightForwarder

OceanCarrier

ConsigneeAuthority

Terminal

Airlifting bills of lading

Blockchain Use case in the Global Trade


TODAY FUTUREFiling in each country, Low use of prior user‘s right,

Difficulty in managing centrallyTransparency, Central life management, Naming

consistency, Licensing management, Harmonization

Visualization of global patent procedures and its management Would promote more efficient IP processes,

active utilization of IP, and patent harmonization

Inventor PatOff A PatOff C

PatOff B SSO

Patent Pool

Licensee

Court

Applicant(Patentee)

PatOffice A

PatOffice B

Patent Pool

Notary Public

SSO

Blockchain use for recording IP Life Log

PatOffice C

Inventor Certifying Date

SEP Declaration

Licensee

Applicant(Patentee)

Blockchain

Others

Smart Contract

Court (incl. Execution Officer)

Assignment

Prior User Right

Patenting

OthersIssue FeeAllowance

ProsecutionO.A.

Filing


ProsecutionO.A.

Filing


ProsecutionO.A.

Filing

ibm’s business, data and ip strategies in the era of ai ... · • even more important, nearly...

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