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Kratz added: “If it’s hard to reverse-engineer AI technology, companies may keep it as a trade secret rather than patenting it. Patents only last 20 years, whereas a trade secret can potentially last indefinitely.”
Growing at a faster clip were leading patent categories focused on mitigating waste, according to a recent IFI Claims analysis of 2024 trends. From reclaiming metals to destroying solid waste, the data also points to an uptick in technologies aimed at creating more sustainable energy. “We’ve also seen three classes related to electrolysis—things like servicing cells or electrolytic methods—which can be used to maintain and build sustainable energy,” said IFI Claims Marketing Manager, Lily Iacurci. “At the same time, alternative protein research surged, reflecting broader interest in developing sustainable food sources for an ever-expanding global population.”
Green-tech growth and evolving patent strategies
IFI’s 2024 USPTO patent analysis
Corporate leadership
- Samsung maintained top position for third consecutive year with 6,377 patents (nearly 2% of all U.S. grants)
- TSMC secured second place with 3,989 patents
- Qualcomm moved to third position
- IBM continued its strategic selective-filing-based descent to eighth place with 2,465 patents, a dip from 3,658 in 2023
Magnificent 7 performance
- Apple ranked highest among the Magnificent 7 (other members include Alphabet, Amazon, Meta, Microsoft, Nvidia, Tesla) at #4 with 3,082 patents, advancing three positions
- Alphabet subsidiary Google achieved #10 ranking with 2,054 patents, also up three places
- Microsoft and Amazon maintained top 20 positions
- Only four of the Magnificent 7 made the Top 50 ranking
Patent metrics
- Total applications reached 430,625 (all-time high)
- Grants increased 3.8% year-over-year to 324,043
- USPTO backlog grew to 813,000 unexamined applications
- Patent pendency extended beyond 20 months, up from under 17 months in 2022
Global distribution
- U.S. companies held slightly under 50% of grants, showing 4% decline
- Japan maintained second position with 43,364 patents (13% share)
- China advanced to third place with 28,258 patents, showing 31.5% growth
- South Korea placed fourth with 24,115 grants
- Germany led Europea with 14,044 grants
Technology trends (CPC codes)
- G06F (electrical digital data processing) and H04L (digital information transmission) remained top classifications
- Both showed decline: G06F down 3%, H04L down 2%
- H01M (batteries) demonstrated strongest growth at 16%
- A61P (medicinal preparations) and G06T (image data generation) both grew 9%
- H10K (organic electric solid-state devices) led application growth at 19%
Outside of the green-tech surge, patent leadership is also shifting. IBM’s granted patents fell by almost one-third in 2024, from 3,658 to 2,465—a deliberate move toward more selective filings. IBM now stands at eighth place. “IBM held the number-one spot in the U.S. Top 50 for 29 years, with Samsung right behind it for about a decade or more,” noted IFI Claims’ Kratz.
Yet IBM continues to file AI patents aggressively. According to a February 5, 2024 Axios article citing IFI Claims research, IBM topped the list of firms with the most AI-related U.S. patent applications over the previous five years—surpassing Microsoft and Google.
Rise of Asian companies
Meanwhile, Asian firms are stepping up. TSMC surged into second place overall with nearly 4,000 U.S. patents in 2024—up more than 8% from the previous year—while Huawei leapt six spots to secure the number five position. “About 10 years ago, 47% of our Top 50 list belonged to Asian companies,” explained Iacurci. “Now it’s around 58%.”
“Asia’s influence in the U.S. Top 10 has actually been growing for two decades,” Kratz added. “At first, it was predominantly Japanese firms, but now we’re seeing significant representation from South Korea and China as well.”
Europe continues to play an important role in the U.S. patent landscape. Germany typically ranks among the top five countries, and Switzerland stood out with the highest growth rate in 2024 at around 21%, followed by France at 14%. This Swiss surge was second only to China in terms of year-over-year growth.
Patents as ‘confirming’ indicators
“Using patents for predictive analytics is always interesting because a patent typically takes about three years to be granted,” Kratz said. “When we talk to hedge funds, we say it’s more of a confirming indicator than a leading indicator.”
He summarized three major trends shaping the latest patent data: “First, the continuing rise of Asian companies in the U.S.; second, the top 10 or top 50 entities commanding such a large share of patents; and third, the USPTO’s progress in tackling the backlog. They’re doing a good job.”
