The number of U.S. utility patents granted declined in 2018 after many years of growth and a record-breaking 2017. The annual IFI CLAIMS analysis released today also notes that there was a decline in published pre-grant applications waiting to be approved by USPTO in 2016 and 2017. I think most of the 3.5 percent decline in 2018 patent grants can be attributed to this. Since published patent applications increased in 2018, we should expect the dip to be temporary, with the number of grants increasing again in the next year or two.

IBM continued to lead in new utility grants in 2018, as it has for the last 26 years. The company received 9,100 grants in 2018 — a one percent increase from 2017. Samsung is as number 2 with 5,850 U.S. grants. Canon holds the number 3 spot as it did last year; Intel is at number 4, and LG at number 5.

Meanwhile Chinese companies, led by Huawei and BOE Technology, gained ground. In fact, China was the only country in the top 10 to actually show an increase in U.S. patent activity; all other countries, including the U.S., saw declines.

Asia holds the largest share of 2018 U.S. patents after the U.S. at 31 percent, while Europe holds 15 percent. A breakdown by country shows Japan with 16 percent of U.S. grants, South Korea with 6.5 percent, and Germany with 5 percent. Mainland China holds 4 percent or 12,589 patents — up 12 percent over 2017.

A decade ago, in 2008, the U.S. dipped to 49 percent of granted U.S. patents, with other countries collectively taking the majority. Foreign countries received about 54 percent of the total U.S. patent grants in 2018, with U.S. companies receiving 46 percent. You can read into this statistic, but I see it less as a U.S. failing and more as a confirmation of the value and importance that foreign firms place on the U.S. market.

If we zoom out and look at global active patent families, not just those in the U.S. and not just those granted in 2018, Samsung holds the top slot. As of December 31, 2018, Samsung Electronics has 61,608 active patent families, followed by Canon with 34,905 and IBM with 34,376.

Overall, patenting activity, especially in the high-tech areas of computers and telecommunications, remains strong. The automotive sector is also very active as new autonomous vehicle technology continues to develop.

The list of 2018’s top U.S. patent recipients follows below.

Company 2018 Grants 2017 Grants IBM 9,100 9,043 Samsung Electronics 5,850 5,837 Canon 3,056 3,285 Intel 2,735 3,023 LG Electronics 2,474 2,701 TSMC 2,465 2,425 Microsoft 2,353 2,441 Qualcomm 2,300 2,628 Apple 2,160 2,229 Ford 2,123 1,868 Google 2,070 2,457 Amazon 2,035 1,963 Toyota 1,959 1,932 Samsung Display 1,948 2,273 Sony 1,688 2,135 Huawei 1,680 1,474 BOE 1,634 1,413 GE 1,597 1,577 Hyundai 1,369 1,304 Ericsson 1,353 1,552 Seiko Epson 1,285 1,406 Panasonic 1,254 1,338 Boeing 1,227 1,177 Robert Bosch 1,136 1,234 Mitsubishi 1,106 1,151 Toshiba 1,104 1,555 GM 1,046 1,066 Ricoh 1,043 1,145 Fujitsu 1,038 1,538 United Technologies 1,011 494 Denso 1,003 929 AT&T 985 946 Honda 926 910 Micron Technology 924 802 Semiconductor Energy 870 977 Siemens 870 939 Cisco 848 967 Koninklijke Philips 844 905 Halliburton Energy 807 738 EMC IP Holding Co 801 646 SK Hynix 801 942 Texas Instruments 785 923 Honeywell 749 856 Murata 743 566 NEC 715 820 Toshiba Memory 700 216 Oracle 685 753 LG Display 681 605 Dell 668 623 Fujifilm 658 695

Larry Cady is Senior Analyst at IFI CLAIMS Patent Services.