Lithium-Ion Battery Patent Landscape - A Patent Portfolio Review

Practical Wisdom, Trusted Advice. www.lockelord.com Lithium-Ion Battery Patent Landscape A Patent Portfolio Review Howard L. Lim Patent Attorney T: 214-740-8555 hlim@lockelord.com Mark R. Backofen Pattent Attorney T: 214-740-8633 mbackofen@lockelord.com Howard L. Lim | hlim@lockelord.com | Dallas | 214-740-8555 Mark Backofen | mbackofen@lockelord.com | Dallas | 214-740-8633 Introduction ........................................................................................................................................................ 1 Top Assignees of Lithium-Ion Battery Patents .............................................................................................................. 2 World-Wide Patents & Applications Filed — Top 30 Assignees ..................................................................... 2 U.S. Patents & Applications Filed — Top 30 Assignees ................................................................................... 3 U.S. Patents & Applications 1991 - 2013 — Top Assignees ............................................................................ 4 Percentage of U.S. Applications Filed 1991 - 2013 — Top Assignees ........................................................... 5 Lithium-Ion Battery Segment View .................................................................................................................................. 6 U.S. Patents & Application Technology Segmentation (by IPC Code) ........................................................... 6 In-Depth Segmentation — Electrodes................................................................................................................. 7 In-Depth Segmentation — Electrode Active Materials (1991 - 2014)............................................................ 8 Silicon Anodes .......................................................................................................................................................... 9 Silicon Anode — Players Dependency by Citations ........................................................................ 10 In-Depth Segmentation – Separators; Membranes; Diaphragms; Spacing Elements ............................ 11 In-Depth Segmentation — Electrolyte ............................................................................................................... 12 Electrolyte — Player Dependencies .................................................................................................. 13 Electrolyte — Toyota Application Citations ...................................................................................... 14 LIB Electrolyte — Top 50 Cited Assignees ...................................................................................... 15 Conclusion .......................................................................................................................................................................... 16 Authors ............................................................................................................................................................................... 17 About Locke Lord’s Intellectual Property Practice ..................................................................................................... 18 CONTENTS Howard L. Lim, Esq. | hlim@lockelord.com | Mark B. Backofen, Esq. | mbackofen@lockelord.com LITHIUM-ION BATTERY PATENT LANDSCAPE | 1 INTRODUCTION The lithium-ion battery (“LIB”) industry has witnessed tremendous growth in the last decade. As a natural part of this growth, the patent landscape of the LIB industry has also undergone tremendous change. As industry participants engage in research and development, the number of patent applications filed disclosing these advancements have also increased at an amazing pace. To study the LIB patent landscape we assembled a portfolio that likely represents the majority of publicly available LIB patents. The portfolio we assembled is an aggregation of 13,909 patent families filed primarily in the United States, the European Union, and Japan. Of this portfolio, 8,709 patent families have a U.S. counterpart. Our analysis focuses on the 8,709 U.S. LIB patents. 2 | LITHIUM-ION BATTERY PATENT LANDSCAPE Howard L. Lim, Esq. | hlim@lockelord.com | Mark B. Backofen, Esq. | mbackofen@lockelord.com 70 72 72 75 75 77 78 82 82 91 95 99 101 107 128 133 148 153 162 190 245 309 325 474 493 632 790 1127 1224 1258 SHOWA DENKO VALENCE TECHNOLOGY UCHICAGO ARGONNE SHARP IDEMITSU KOSAN 3M DENSO GENERAL MOTORS CEA GS YUASA ZEON GREATBATCH MITSUI GROUP UBE IND. NAT'L INST. ADV. INDUST. SCI. &… TDK NGK INSULATORS ROBERT BOSCH TOSHIBA GROUP SHIN KOBE ELECTRIC MACHINERY SUMITOMO GROUP NISSAN MOTOR NEC GROUP MITSUBISHI GROUP SONY LG CHEM HITACHI GROUP TOYOTA GROUP PANASONIC + SANYO SAMSUNG GROUP World-Wide Patents & Applications Filed - Top 30 Assignees TOP ASSIGNEES OF LITHIUM-ION BATTERY PATENTS World-Wide Patents & Applications Filed – Top 30 Assignees Although many companies in the LIB industry file patent applications, top manufacturers in particular have established large portfolios due in part to the large amount of research and development they perform. Although LIB manufacturers have been responsible for the majority of filings in the reviewed time frame, companies up and down the LIB supply chain have also filed a large number of applications. This includes upstream manufacturers, such as materials and component suppliers as well as downstream users, such as automotive manufacturers. Howard L. Lim, Esq. | hlim@lockelord.com | Mark B. Backofen, Esq. | mbackofen@lockelord.com LITHIUM-ION BATTERY PATENT LANDSCAPE | 3 U.S. Patents & Applications Filed – Top 30 Assignees Different industry applicants have adopted different strategies as to growing their LIB patent portfolios. Patent rights are territorial and to receive patent protection in each country (or region in the context of the European Union), companies must file in that country/region. Various factors affect whether a company decides to file in the U.S. Such factors include the physical location of the inventors, the home country of the company, the company’s product portfolio, the company’s product strategy and anticipated markets, and of course cost. The list of the top 30 filers in the U.S. is slightly different from the list of top 30 filers globally. The remainder of this patent landscape study will focus on the U.S. 46 48 49 53 54 56 59 60 60 60 60 69 71 71 72 73 76 77 82 86 94 97 141 160 250 287 403 598 618 1240 AMPEREX TECHNOLOGY GROUP HON HAI PRECISION INDUSTRY SHOWA DENKO TSINGHUA UNIVERSITY BASF NGK INSULATORS GS YUASA ELECTROCHEM SOLUTIONS GREATBATCH GLOBE TOOL MICRO POWER ELECTRONICS NEURONEXUS TECHNOLOGIES VALENCE TECHNOLOGY TDK UBE INDUSTRIES UCHICAGO ARGONNE TOSHIBA 3M CEA GENERAL MOTORS NISSAN MOTOR GREATBATCH MITSUBISHI GROUP ROBERT BOSCH NEC GROUP HITACHI GROUP SONY TOYOTA GROUP PANASONIC + SANYO LG CHEM SAMSUNG GROUP U.S. Patents & Applications Filed - Top 30 Assignees 4 | LITHIUM-ION BATTERY PATENT LANDSCAPE Howard L. Lim, Esq. | hlim@lockelord.com | Mark B. Backofen, Esq. | mbackofen@lockelord.com U.S. Patents & Applications 1991-2013 – Top Assignees It is important, first of all, to understand that, although patent application data up to 2014 is shown, there is an important caveat for data for the years 2013 and 2014. U.S. applications are not published, and are therefore not publicly accessible, until 18 months after their earliest filing date. In addition, if an application is first filed in a foreign country, international treaties do not require a corresponding U.S. application to be filed until 12 months after the foreign filing date. And if a Patent Cooperation Treaty application is filed within that 12 months it may be another 18 months before it has to be nationalized in the U.S. Once filed in the U.S. the application will be processed for publication since more than 18 months has already passed since the first filing, but that processing still takes some additional time. Therefore it can be more than 30 months after a first filing before a patent application is published in the U.S. As such, data from 2013 and 2014 is likely to be incomplete. U.S. LIB patent applications experienced flat to slow growth in the first half of the 2000s after experiencing a period of steady growth throughout the 1990s. During the latter half of the 1990s, filings made by the top 10 assignees accounted for more than 50% of all filings. In the early 2000s, filings by companies outside of the top 10 assignees began to grow as a percentage of total filings. In 2005, U.S. LIB applications began a three year period of steady growth, experiencing only a brief hiatus in 2008 likely due to the great recession and curtailed intellectual property budgets across the globe. However, beginning in 2009, LIB applications began surging upwards. That trend continued unabated into the early 2010s. Interestingly, filings by firms outside of the top 10 assignees accounted for the majority of the growth, suggesting that many other players (regardless of whether they are traditional or new LIB industry participants) are engaging in R&D and filing patent applications. 9 11 29 42 73 88 90 111 95 153 190 180 167 162 181 204 203 250 282 383 468 486 468 187 0 100 200 300 400 500 600 700 800 900 1000 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 U.S. Applications 1991-2015 - Top Assignees OTHERS SAMSUNG GROUP LG CHEM NEC GROUP SONY TOYOTA GROUP ROBERT BOSCH PANASONIC + SANYO HITACHI GROUP MITSUBISHI GROUP Howard L. Lim, Esq. | hlim@lockelord.com | Mark B. Backofen, Esq. | mbackofen@lockelord.com LITHIUM-ION BATTERY PATENT LANDSCAPE | 5 Percentage of U.S. Applications Filed 1991-2013 – Top Assignees An analysis of the percentage of U.S. patent applications filed over time indicate that starting in the latter half of the 1990s, there was a great increase in the number of patent applications filed by the major manufacturers of lithium-ion batteries as a percentage of all applications filed. This trend continued until 2007 where filings by the major LIB manufacturers peaked at about 54% of all U.S. filings. From 2008 onwards, filing activity by the major manufacturers fell to less than 50% of all filings. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percentage of U.S. Applications Filed 1991-2013 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percentage of U.S. Applications Filed 1991-2013 OTHERS SAMSUNG GROUP LG CHEM NEC GROUP SONY TOYOTA GROUP ROBERT BOSCH PANASONIC + SANYO HITACHI GROUP MITSUBISHI GROUP 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percentage of U.S. Applications Filed 1991-2013 6 | LITHIUM-ION BATTERY PATENT LANDSCAPE Howard L. Lim, Esq. | hlim@lockelord.com | Mark B. Backofen, Esq. | mbackofen@lockelord.com LITHIUM-ION BATTERY SEGMENT VIEW U.S. Patent & Applications Technology Segmentation (by IPC Code) The World Intellectual Patent Organization provides for a systems of classification of patents and patent applications known as the International Patent Classification (“IPC”) Code. A breakdown of all LIB patents filed over time indicate that nearly half (48%) of all U.S. applications in the LIB field are related to “electrode technology.” Electrode technology in this instance refers to applications that disclose the composition of active materials, but also includes binders and fillers. A significant percentage of applications were specifically related to the category titled “manufacture of LIB secondary cells,” which includes disclosures related to electrolytes, electrolyte additives, and the physical structure of electrodes. A third category of patent applications, “constructional details, or processes of manufactures, of the non-active parts,” at 8%, includes disclosures that relate to the physical structure of LIB cells including lids, covers, sealing materials, sealing methods, vents, and arrangement of connectors within cells. This category also includes cells holders, separator membranes, terminals, connection methods in battery packs, and other safety mechanisms in general. Others 3460 (5%) Primary Cells 2306 (3%) Constructional details, or processes of manufacture, of the non-active parts 5664 (8%) Electrodes 32276 (48%) Manufacture of Secondary Cells 23065 (35%) Patent & Application Segmentation (by IPC Code) Howard L. Lim, Esq. | hlim@lockelord.com | Mark B. Backofen, Esq. | mbackofen@lockelord.com LITHIUM-ION BATTERY PATENT LANDSCAPE | 7 In-Depth Segmentation – Electrodes A more in-depth segmentation of the “electrode technology” category, which accounts for 48% of all LIB filings, indicates that there is a generally even spread of applications across different LIB active materials (i.e., chemistry types). Patent applications related to “phosphates,” “mixed oxides containing iron, cobalt or nickel,” and “mixed oxides containing manganese” each make up 13% of all filings. “Oxides containing titanium” are at 11%. Filings for “graphite intercalation compounds,” “metals, silicon or alloys,” and “sulfides, selenides, tellurides, halogenides, alloys based on alkali metals,” are all at around 8-9% each. Finally, the traditional cobalt based LIB represents 10% of all filings. The remaining filings are for binders and fillers at 6%. 8 | LITHIUM-ION BATTERY PATENT LANDSCAPE Howard L. Lim, Esq. | hlim@lockelord.com | Mark B. Backofen, Esq. | mbackofen@lockelord.com In-Depth Segmentation – Electrode Active Materials (1991-2014) A graph of electrode active materials segmented over time appears very similar to the same graph of overall LIB filings, suggesting that electrode active materials has always been and will remain a major driver behind LIB filings. Although we observe a sharp increase in electrode active materials related filings beginning in 2009 like we observe in the general trend for LIB materials, the increase in electrode active material filings is actually larger. There were nearly three times as many filings for new electrode active material applications in 2012 as there were in 2008. The explosive growth in filings beginning in 2009 appear to be driven by the category for alloys based on alkali metals, magnesium or aluminum. Nickel Cobalt Aluminum (NCA) based cathodes would likely be categorized under this classification. At the same time NCA based cathodes would also be categorized under mixed oxides containing iron, cobalt or nickel. Phosphate based active materials were also a main driver of growth during this later period. Nickel Manganese Cobalt (NMC) based cathodes are likely also to span the categories of mixed oxides containing iron, cobalt or nickel and mixed oxides containing manganese. The growth in titanium oxide based filings, although showing some early growth in 2009, appears to have tempered out by 2012. We remind everyone here that the data for 2013 and 2014 may be incomplete due to the nature of how the international patent system functions. But looking at the proportional breakdown of applications for 2013 that have already been disclosed, it is entirely possible that 2013 further reflects the continued growth trend as seen in 2012. Howard L. Lim, Esq. | hlim@lockelord.com | Mark B. Backofen, Esq. | mbackofen@lockelord.com LITHIUM-ION BATTERY PATENT LANDSCAPE | 9 Silicon Anodes The silicon anode has long been touted as a replacement for the graphite anode. Not much effort was directed at silicone anodes through the 1990s and through to the early 2000s. Early filings in the silicon anode area were mainly by the major manufacturers. Japanese LIB manufacturers seemed to have a taken a greater earlier interest in silicon anodes. However the Korean LIB manufacturers soon followed and were responsible for a large number of filings related to silicon anodes in the 2010s. More interestingly is the large jump in filings for silicon anodes by “other” manufacturers. Starting in 2011 more than half of silicone anode related filings can be attributed to other manufactures outside of the top 10 assignees. This would indicate that research and development of silicon anodes has gone mainstream. 2 4 8 5 4 2 1 2 3 2 6 8 10 2 6 1 2 2 3 2 2 6 2 1 10 10 18 12 6 6 8 6 5 6 12 21 30 44 39 6 0 10 20 30 40 50 60 70 80 90 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 U.S. Applications Silicon Anode - Top 10 Assignees + Others Others SAMSUNG SDI SONY SANYO ELECTRIC LG CHEM PANASONIC SHINETSU CHEMICAL NEXEON NEC OSAKA TITANIUM TECHNOLOGIES GENERAL MOTORS 2 4 8 5 4 2 1 2 3 2 6 8 10 2 6 1 2 2 3 2 2 6 2 1 10 10 18 12 6 6 8 6 5 6 12 21 30 44 39 6 0 10 20 30 40 50 60 70 80 90 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 U.S. Applications Silicon Anode - Top 10 Assignees + Others Others SAMSUNG SDI SONY SANYO ELECTRIC LG CHEM PANASONIC SHINETSU CHEMICAL NEXEON NEC OSAKA TITANIUM TECHNOLOGIES GENERAL MOTORS 2 4 8 5 4 2 1 2 3 2 6 8 10 2 6 1 2 2 3 2 2 6 2 1 10 10 18 12 6 6 8 6 5 6 12 21 30 44 39 6 0 10 20 30 40 50 60 70 80 90 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 U.S. Applications Silicon Anode - Top 10 Assignees + Others Others SAMSUNG SDI SONY SANYO ELECTRIC LG CHEM PANASONIC SHINETSU CHEMICAL NEXEON NEC OSAKA TITANIUM TECHNOLOGIES GENERAL MOTORS 2 4 8 5 4 2 1 2 3 2 6 8 10 2 6 1 2 2 3 2 2 6 2 1 10 10 18 12 6 6 8 6 5 6 12 21 30 44 39 6 0 10 20 30 40 50 60 70 80 90 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 U.S. Applications Silicon Anode - Top 10 Assignees + Others Others SAMSUNG SDI SONY SANYO ELECTRIC LG CHEM PANASONIC SHINETSU CHEMICAL NEXEON NEC OSAKA TITANIUM TECHNOLOGIES GENERAL MOTORS 2 4 8 5 4 2 1 2 3 2 6 8 10 2 6 1 2 2 3 2 2 6 2 1 10 10 18 12 6 6 8 6 5 6 12 21 30 44 39 6 0 10 20 30 40 50 60 70 80 90 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 U.S. Applications Silicon Anode - Top 10 Assignees + Others Others SAMSUNG SDI SONY SANYO ELECTRIC LG CHEM PANASONIC SHINETSU CHEMICAL NEXEON NEC OSAKA TITANIUM TECHNOLOGIES 2 GENERAL MOTORS 4 8 5 4 2 1 2 3 2 6 8 10 2 6 1 2 2 3 2 2 6 2 1 10 10 18 12 6 6 8 6 5 6 12 21 30 44 39 6 0 10 20 30 40 50 60 70 80 90 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 U.S. Applications Silicon Anode - Top 10 Assignees + Others Others SAMSUNG SDI SONY SANYO ELECTRIC LG CHEM PANASONIC SHINETSU CHEMICAL NEXEON NEC OSAKA TITANIUM TECHNOLOGIES GENERAL MOTORS 10 | LITHIUM-ION BATTERY PATENT LANDSCAPE Howard L. Lim, Esq. | hlim@lockelord.com | Mark B. Backofen, Esq. | mbackofen@lockelord.com Silicon Anode – Players Dependency by Citations The following citation chart illustrates the dependencies amongst players in LIB silicon anode related filings. Patent applicants are required to cite to prior patents and applications of which they are aware that are relevant to the invention they are claiming. In addition, patent examiners also conduct a search for related patents and these get cited on the issued patent as well. Thus, a review of how often a patent is cited by other patents can provide some information regarding how significant the disclosure of the initial patent is to that particular field. A patent that discloses a fundamental breakthrough in a particular area is likely going to be cited by numerous later patents that seek to improve on that area. Players dependency by citations Howard L. Lim, Esq. | hlim@lockelord.com | Mark B. Backofen, Esq. | mbackofen@lockelord.com LITHIUM-ION BATTERY PATENT LANDSCAPE | 11 In-Depth Segmentation – Separators; Membranes; Diaphragms; Spacing Elements The in-depth segmentation of the applications for separators and membranes seems to present a different picture. Although filings for separator technology experienced steady growth in the late 1990s to early 2000s, filings dropped in the mid-2000s. Also, filings in the area of separators has not been concentrated within the top 10 assignees suggesting that investment in separators has been rather decentralized. It is interesting to note the huge jump in filings for separators in 2011 as compared to 2010 with a large number of filings in particular attributable to a single assignee (LG Chem). Another interesting note is that compared to LIB filings in general, filings related to separators experienced a drop in 2012 versus the previous year. 0 0 0 0 0 0 0 0 0 2 2 0 3 6 8 13 6 7 7 9 34 24 8 0 0 0 0 0 0 0 0 0 2 6 8 13 7 12 14 4 5 7 8 8 8 18 20 3 1 1 3 3 5 9 12 10 24 25 29 26 19 24 23 13 29 31 53 50 65 49 21 10 0 20 40 60 80 100 120 140 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 U.S. Applications Separators - Top 10 Assignees + Others Others SAMSUNG SDI LG CHEM PANASONIC TORAY BATTERY SEPARATOR FILM SONY GENERAL MOTORS SANYO ELECTRIC MITSUBISHI ELECTRIC SION POWER DEGUSSA 0 0 0 0 0 0 0 0 0 2 2 0 3 6 8 13 6 7 7 9 34 24 8 0 0 0 0 0 0 0 0 0 2 6 8 13 7 12 14 4 5 7 8 8 8 18 20 3 1 1 3 3 5 9 12 10 24 25 29 26 19 24 23 13 29 31 53 50 65 49 21 10 0 20 40 60 80 100 120 140 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 U.S. Applications Separators - Top 10 Assignees + Others Others SAMSUNG SDI LG CHEM PANASONIC TORAY BATTERY SEPARATOR FILM SONY GENERAL MOTORS SANYO ELECTRIC MITSUBISHI ELECTRIC SION POWER DEGUSSA 0 0 0 0 0 0 0 0 0 2 2 0 3 6 8 13 6 7 7 9 34 24 8 0 0 0 0 0 0 0 0 0 2 6 8 13 7 12 14 4 5 7 8 8 8 18 20 3 1 1 3 3 5 9 12 10 24 25 29 26 19 24 23 13 29 31 53 50 65 49 21 10 0 20 40 60 80 100 120 140 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 U.S. Applications Separators - Top 10 Assignees + Others Others SAMSUNG SDI LG CHEM PANASONIC TORAY BATTERY SEPARATOR FILM SONY GENERAL MOTORS SANYO ELECTRIC MITSUBISHI ELECTRIC SION POWER DEGUSSA 0 0 0 0 0 0 0 0 0 2 2 0 3 6 8 13 6 7 7 9 34 24 8 0 0 0 0 0 0 0 0 0 2 6 8 13 7 12 14 4 5 7 8 8 8 18 20 3 1 1 3 3 5 9 12 10 24 25 29 26 19 24 23 13 29 31 53 50 65 49 21 10 0 20 40 60 80 100 120 140 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 U.S. Applications Separators - Top 10 Assignees + Others Others SAMSUNG SDI LG CHEM PANASONIC TORAY BATTERY SEPARATOR FILM SONY GENERAL MOTORS SANYO ELECTRIC MITSUBISHI ELECTRIC SION POWER DEGUSSA 12 | LITHIUM-ION BATTERY PATENT LANDSCAPE Howard L. Lim, Esq. | hlim@lockelord.com | Mark B. Backofen, Esq. | mbackofen@lockelord.com In-Depth Segmentation – Electrolyte Filings related to electrolytes exhibits a similar trend to that of separators with filings rapidly increasing in 2009 and peaking in 2010 before falling off in 2011 and 2012, which are both years for which we have a full year of data. Although in recent years the major manufacturers were responsible for a large percentage of the filings, an equally significant percentage of filings are still made by manufacturers in the “others” category. 2 16 1 6 11 6 18 13 17 11 5 10 3 14 32 20 21 42 66 93 91 66 56 37 0 20 40 60 80 100 120 140 160 180 200 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 U.S. Applications Electrolyte - Top 10 Assignees + Others Others LG CHEM SONY SAMSUNG SDI TOYOTA MOTOR SANYO ELECTRIC PANASONIC UBE INDUSTRIES MITSUBISHI CHEMICAL SAMSUNG ELECTRONICS UCHICAGO ARGONNE 2 16 1 6 11 6 18 13 17 11 5 10 3 14 32 20 21 42 66 93 91 66 56 37 0 20 40 60 80 100 120 140 160 180 200 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 U.S. Applications Electrolyte - Top 10 Assignees + Others Others LG CHEM SONY SAMSUNG SDI TOYOTA MOTOR SANYO ELECTRIC PANASONIC UBE INDUSTRIES MITSUBISHI CHEMICAL SAMSUNG ELECTRONICS UCHICAGO ARGONNE 2 16 1 6 11 6 18 13 17 11 5 10 3 14 32 20 21 42 66 93 91 66 56 37 0 20 40 60 80 100 120 140 160 180 200 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 U.S. Applications Electrolyte - Top 10 Assignees + Others Others LG CHEM SONY SAMSUNG SDI TOYOTA MOTOR SANYO ELECTRIC PANASONIC UBE INDUSTRIES MITSUBISHI CHEMICAL SAMSUNG ELECTRONICS UCHICAGO ARGONNE 2 16 1 6 11 6 18 13 17 11 5 10 3 14 32 20 21 42 66 93 91 66 56 37 0 20 40 60 80 100 120 140 160 180 200 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 U.S. Applications Electrolyte - Top 10 Assignees + Others Others LG CHEM SONY SAMSUNG SDI TOYOTA MOTOR SANYO ELECTRIC PANASONIC UBE INDUSTRIES MITSUBISHI CHEMICAL SAMSUNG ELECTRONICS UCHICAGO ARGONNE Howard L. Lim, Esq. | hlim@lockelord.com | Mark B. Backofen, Esq. | mbackofen@lockelord.com LITHIUM-ION BATTERY PATENT LANDSCAPE | 13 Electrolyte – Player Dependencies The following citation chart illustrates the dependencies amongst players in LIB electrolyte related filings. Innovation in the LIB electrolyte area does not take place in a vacuum as it appears that there is a high-level of interdependency of patent citations between players. By analyzing the citation dependencies, it becomes possible to ascertain which players have foundational patents that may control access to LIB electrolyte technology. Players dependency by citations 14 | LITHIUM-ION BATTERY PATENT LANDSCAPE Howard L. Lim, Esq. | hlim@lockelord.com | Mark B. Backofen, Esq. | mbackofen@lockelord.com Electrolyte – Toyota Application Citations Our analysis tools allow us to look at a particular manufacturer and their relationship to other manufacturers. In this instance, we have presented the example of Toyota Motor, showing the citations listed in Toyota’s patent applications and who they cite to. Although a relative late entrant into the LIB field, Toyota has still developed a significant portfolio of IP in LIB. While in this case, all the citations are of third party patents by the Toyota patents, this type of analysis can be used to identify competitors who are working on improvements to key base technologies. Players dependency by citations Howard L. Lim, Esq. | hlim@lockelord.com | Mark B. Backofen, Esq. | mbackofen@lockelord.com LITHIUM-ION BATTERY PATENT LANDSCAPE | 15 LIB Electrolyte – Top 50 Cited Assignees One method to understand which assignee may hold the foundational patents in LIB is to understand how often their patents are cited. Foundational patents in a field, due to their fundamental disclosure and broad claims are often cited by many later patents. For LIB electrolytes, the top 10 list is not necessarily dominated by the LIB cell manufacturers. The Argonne National Laboratory, although not a manufacturer, is fourth on the list in terms of most cited patents, suggesting that it may a hold a large number of foundational patents in the LIB electrolyte area. 16 | LITHIUM-ION BATTERY PATENT LANDSCAPE Howard L. Lim, Esq. | hlim@lockelord.com | Mark B. Backofen, Esq. | mbackofen@lockelord.com CONCLUSION The patent landscape for LIB is undergoing a period of unprecedented shifts that is a reflection of the research and development activity in the LIB industry as a whole. Some observations that we can draw from the above analysis of 13,909 patent families filed primarily in the United States, the European Union, and Japan with a focus on 8,709 U.S. counterparts are: • Top assignees of LIB patents and patent applications world-wide differ from top assignees in the U.S. – LIB industry participants have diverging patent portfolio strategies world-wide versus the U.S. due to a variety of factors. • LIB related U.S. patent applications surged upwards beginning in 2009 and that pace appears to continue unabated (in comparison total U.S. utility patent filings were flat between 2009 and 2008, and grew about 7.4%, 2.6%, and 7.7% over the previous year in 2010, 2011 and 2012 respectively). • Patent application filings by LIB industry participants outside of the group of traditional LIB manufacturers as a percentage of total filings have consistently pushed above 50%, suggesting that there is increasing diversity and contribution to the global patent base by a variety of new entrants and existing players. • U.S. patent applications related to electrode active materials account for almost half of all filings since the emergence of LIB in the early 1990s. Electrode active materials will continue to drive the growth LIB filings in the near future. • U.S. patent applications related to silicon anodes leaped upwards in 2010 commensurate to the widespread interest in adopting silicon based materials in anodes. • Research and development as reflected in U.S. patent applications in separators and electrolytes fluctuate unevenly from year to year. • Citation analysis in a specific area can help gain an understanding of the players and who may have control over foundational patents. Howard L. Lim, Esq. | hlim@lockelord.com | Mark B. Backofen, Esq. | mbackofen@lockelord.com LITHIUM-ION BATTERY PATENT LANDSCAPE | 17 AUTHORS Howard L. Lim Patent Attorney T: 214-740-8555 hlim@lockelord.com Howard L. Lim is a licensed patent attorney with the international law firm Locke Lord LLP. His practice focuses primarily on patent preparation and application, as well as patent litigation. He is licensed to practice before the United States Patent and Trademark Office. He also represents clients in patent litigation in various federal courts across the country including the United States District Court for the Eastern District of Texas and the Northern District of California. Prior to becoming an IP attorney, he was in various roles doing market analysis, new product development and business development with Sanyo Electric Co. Ltd. (now a part of Panasonic) in relation to lithium-ion batteries as a battery industry insider. Howard holds a J.D. and Masters in Electrical Engineering. Mark R. Backofen Pattent Attorney T: 214-740-8633 mbackofen@lockelord.com Mark Backofen is a licensed patent attorney with a B.S. in Chemistry. He has over 14 years of experience in all aspects of intellectual property, including patents, trademarks, copyrights, and trade secrets, both in litigation as well as their preparation, prosecution, and licensing. His broad experience allows the issue to be addressed from both a litigation as well as transactional viewpoint. He has been involved in litigation in Federal Courts in Texas, Washington, D.C. and New York as well as administrative proceedings in the U.S. Patent and Trademark Office. 18 | LITHIUM-ION BATTERY PATENT LANDSCAPE Howard L. Lim, Esq. | hlim@lockelord.com | Mark B. Backofen, Esq. | mbackofen@lockelord.com Locke Lord LLP disclaims all liability whatsoever in relation to any materials or information provided. This brochure is provided solely for educational and informational purposes. It is not intended to constitute legal advice or to create an attorney-client relationship. If you wish to secure legal advice specific to your enterprise and circumstances in connection with any of the topics addressed, we encourage you to engage counsel of your choice. 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