February 5, 2025
U.S. Patent Grants Rebound, But Global Competition Heats Up
By Champion LLP
The U.S. Patent and Trademark Office (USPTO) saw a 3.8% increase in patent grants in 2024, reversing a four-year downward trend. This rebound comes alongside a record number of patent applications, exceeding 430,000, according to a new report from IFI Claims Patent Services.
Samsung retained its top spot for most patents granted, followed by TSMC and Qualcomm. Notably, the USPTO is making headway in addressing its patent application backlog, though it remains significantly higher than pre-pandemic levels.
So what does this mean?
First, the USPTO must deal with the increased workload. This can require longer wait times and uncertainty. In addition, the question remains whether the applications actually lead to more patents or to a disproportionate number of “bad” patents that only complicate IP issues related to operations and profitability when applicants don’t have the proper stakeholders involved and aren’t fully prepared to successfully navigate an occasionally complex process.
There are other takeaways from the increase.
While the agency is working to expedite application reviews, the report highlights a shift in overall patent ownership. U.S. companies, while still receiving the largest number of patents, are losing ground to international competitors, particularly those in Asia. Chinese companies, in particular, saw a 32% surge in patents granted compared to 2023.
This trend underscores the increasing globalization of innovation and the enduring importance for U.S. companies to remain vigilant in proactively seeking or pursuing intellectual property protection, depending on the circumstance. Patent litigation could start to see a sharp increase as a result of the competition.
The report also sheds light on emerging technology areas.
Waste management and alternative protein technologies are seeing a rise in patent applications, reflecting growing interest and investment in these sectors. Interestingly, major U.S. tech companies like Meta, Nvidia and Tesla were absent from the top 50 patent recipients, while Google, Amazon, Apple and Microsoft all secured spots within the top 20.
These findings provide valuable insights into the evolving landscape of innovation and intellectual property in the U.S. The growing backlog and shift in patent ownership highlight the challenges and opportunities facing the USPTO and U.S. companies in the global marketplace.