IFI Insights: Inventing the Metaverse

Technology companies are laying the patent groundwork for this whole new immersive 3D world

Last year, the notion of a metaverse appeared to burst onto the scene out of
nowhere. But a recent analysis of patent applications and grants by IFI's
Barcelona-based partners at IALE Tecnología, a consulting firm specializing in
the detection and analysis of emerging innovation, shows that over the past five years, companies have steadily been amassing patent positions
that will help them stake their claims in this promising
new frontier called the metaverse.

Patent diagram: US-11215817-B1

US-11215817-B1

The Wondrous World of the Metaverse

Understanding something that doesn't yet exist in its fullness is no easy task. For all the recent buzz around the metaverse, the implementation of this ecosystem that blends both real and digital worlds with help from augmented reality technologies is still in its formative years. But the term and concept of a metaverse is nothing new: you might have only just heard of the metaverse recently, but it was first coined 30 years ago by futurist author Neal Stephenson in his book Snow Crash. In the early aughts, there was Second Life, a popular multi-player video game that had users creating avatars, which interacted in a virtual world. Second Life, a forerunner to the metaverse, was all the rage for a while, but flattened out over time.

The computing world is entering the next big era of the internet—a.k.a. Web 3.0—at a moment in history when meeting in virtual spaces is becoming ever more accepted and the idea of transacting in crypto takes shape as having a place in this future (current market rout notwithstanding). As with any technology in the cradle, there will be starts and stops, pivots and shake-outs. The initial metaverse hype has settled down, and now businesses are grappling with how to build it out and how to invest their resources in an increasingly challenging economic environment.

Nobody can say what the prospects of the metaverse will hold or how far out in the future it will fully materialize. Still, companies see the opportunity and are placing wagers now. Investment bank Citi recently predicted a metaverse market at between $8 trillion and $13 trillion by 2030, with some five billion users. Banks JPMorgan Chase and HSBC now have footprints in the metaverse. And, of course, late last year, Facebook rebranded itself as Meta, an unmistakable indication of where CEO Mark Zuckerberg sees the future of the social media company. But while the opportunity may be enormous, figuring out how to make money during the development stage is another story; profits are further down the road. Case in point: Roblox, a game platform company, has millions of users playing in its metaverse but hasn't yet posted any earnings.

One of the best predictors of who the frontrunners are in any nascent technology is patenting activity. That's why IFI CLAIMS, the industry's most trusted patent data provider, asked the team at IALE Tecnología, which helps R&D centers evaluate the competitive intelligence around their technology, to take a look at the invention landscape around the metaverse.

But first a note on patents in the metaverse space: Patent professionals generally use established patent classification systems to restrict searches within specific technologies. Currently, there are no existing classifications specifically associated with metaverse technologies because the area is still in its infancy, and as such, is vague. That said, there is a convergence of various technologies forming this future paradigm of living, working, socializing, and transacting. IALE’s CEO and patent whiz, Enric Escorsa led the review by looking at technologies in both wide-ranging (computing, games) and narrow (cyberspace, virtual economy, human-computer interaction) classification areas. Escorsa tailored a query using a series of key words and defining concepts around the metaverse, as it exists at this time. As such, the search he created is more subjective than most patent searches. His findings, nonetheless, are eye-opening.
Below are the highlights.

Patent diagram: US-10845894-B2

US-10845894-B2
A Finger on the Pulse of the Metaverse

A finger-mounted electronic system, granted to Apple in 2020, measures attributes in the real world and transfers it to a realm enhanced by augmented reality.

Companies Creating the Metaverse

Breaking down the number of patent publications by year for each company shows the evolution of the intellectual property pathway that a company is pursuing, It also indicates which companies are pushing forward and which might be running into obstacles or petering out. According to the chart below, Microsoft, Samsung, and Magic Leap have been committed and steady investors for years in augmented reality technologies. Facebook (now Meta), IBM, Baidu and Adobe have increased their patent activity in metaverse technologies more recently.

Evolution of Top Current Assignees in the Metaverse

1 Patent 42 Patents
2018 2019 2020 2021
Adobe Inc
Disney Enterprises Inc
Facebook Technologies LLC
Intel Corp
International Business Machines Corp
Magic Leap Inc
Microsoft Technology Licensing LLC
Samsung Electronics Co Ltd
Snap Inc
Verizon Patent and Licensing Inc

Prevalent Patent Classifications in the Metaverse

Tracking patent classifications—the hierarchical system of codes used to categorize invention—is equally instructive in determining the direction of metaverse development. Some of the top technology hotbeds in this area involve recognizing patterns, manipulating 3D models, head-mounted optical devices, and interactions with the human body. Other small but budding areas of metaverse patenting include 3D animation of characters and terrestrial scenes.

Evolution of Technologies

0 Patents 7 Patents
2018 2019 2020 2021
G06F 3/011
G06F 3/017
G06F 3/04815
G06K 9/6256
G06N 20/00
G06Q 50/01
G06T 13/40
G06T 19/006
G06T 7/70

Hover over any CPC code to see the definition

Top Patent Codes Filed By Companies Pursuing the Metaverse

Confining our search to the top companies patenting in the metaverse space, we combed our database for the top five codes under which each company is filing patents. What this tells us? The areas of tech focus inside each company and the strategies they are employing to stake and fill the patent white space. Microsoft and Meta, for example, are positioning themselves in 3D computer graphics and interface arrangements. Magic Leap is patenting in the area of optical devices and elements. Samsung is making strong Al moves along the lines of pattern recognition, neural networks and machine learning, along with image and video information extraction. Sony has been bringing together gaming systems with financial rewards, while Intel has been emphasizing animation. And Disney is covering many metaverse bases, including optical systems and holograms.

As patent filings grow rapidly in metaverse areas, it also bears mentioning, at this stage, that there are companies that may not be at the top of the numbers stack right now, but they are inventing in exciting and potentially disruptive ways. A company called Holovisions, for instance, is inventing around advertising using holographic technology. Ultraleap has been developing hand tracking and haptics technologies. And Trigger is patenting around mixed reality solutions in order to bring characters and brands into the metaverse.

Microsoft

Samsung

Magic Leap

IBM

Disney

Verizon

Adobe

Facebook

Hover over any bar to see the definition of its CPC code

Patent diagram: US-11257292-B2

US-11257292-B2
May I Have Your Holograph?

In February, Microsoft won a patent grant for holographic augmentation of earthly objects captured with a mixed-reality device.

IALE Tecnología is a consulting firm that helps technologically innovative organizations understand their position in the competitive landscape. Through such products as Technology Watch and Competitive Intelligence, IALE offers innovation management, creator analysis, design, and R&D solutions for public and private companies seeking to map out and recognize the opportunities and threats in their emerging technology lines. For more information, visit https://www.ialetecnologia.com.

Disclaimer

The top applicants were determined based on the current owners of patented technologies. Although considered in our research, companies related to the listed current owners (such as Meta Platforms Inc, and Samsung Display Co) appeared lower on the top applicant list in terms of current patent ownership.
To learn more about how IFI determines current ownership and how to search at the Ultimate Owner level, click here.

References