by the numbers
Two major players in Houston’s energy industry are also major players in the patent arena.
A new ranking from the analytics arm of patent law firm Harrity & Harrity puts Saudi Aramco, whose North American headquarters is in Houston, and Halliburton, whose global headquarters is in Houston, puts them in a tie for the number of U.S. patents with 963 patents received in 2022. Saudi Aramco and Halliburton now share the title of Houston’s patent king.
Saudi Aramco saw a 12 percent rise in patents granted in 2022 compared with 2021, according to Harrity & Harrity’s Patent 300 report, while Halliburton experienced a 5 percent jump. Each company tied for 44th place among the top 300 U.S. patient recipients in 2022.
According to the report, Samsung Electronics (8,513 patents) knocked IBM off its longtime pedestal as the No. 1 recipient of U.S. patents. IBM (4,743 patents) now holds the No. 2 position.
Many of Aramco’s U.S. patents come from its R&D centers in Houston, Boston, and Detroit. The Houston R&D hub opened in 2014 and underwent an expansion three years later.
Aramco, a Saudi Arabia-based supplier of oil and natural gas, also generates patents through academic partnerships, such as the one it established last year with Rice University’s Carbon Hub. Aramco has committed $10 million over five years to the carbon initiative.
“While patents are a leading indicator of innovation, the ultimate goal is to create value through the development of solutions that help to address a particular need,” Aramco says . “Such results are often only possible with significant upfront investments, and patents make it possible to recoup these costs and potentially generate additional revenue through commercialization.”
Last year, Aramco boasted that it ranked first in the oil and gas industry for U.S. patents (864) granted in 2021. Until 2011, Aramco had received only 100 U.S. patents over a 78-year span.
“Many of the patents are for innovations Aramco uses itself for competitive advantage, although they can also be licensed to others, creating extra value for the company,” Jamil Bagawi, then the company’s chief engineer, wrote in 2021 .
Halliburton also has ramped up its patenting efforts in recent years.
According to Houston law firm Yetter Coleman, those efforts kicked into high gear after Halliburton lost a fracking patent lawsuit to Tomball-based BJ Services, which is now out of business. In 2003, a Houston jury awarded $98 million in damages to BJ in the case, and Halliburton had to stop selling the system that allegedly infringed on BJ’s patent.
In the five years before the verdict, Halliburton averaged 142 patent awards a year, according to Yetter Coleman. The law firm reported in 2013 that Halliburton subsequently averaged 234 patents a year.
Today, of course, Halliburton has far exceeded those numbers. And it vigorously defends its growing patent portfolio. In September 2022, for instance, three subsidiaries of the oilfield services giant filed two lawsuits against Houston-based rival U.S. Well Services alleging infringement of 14 Halliburton patents.
IAM, a website that reports about the intellectual property industry, noted that when Halliburton sued U.S. Well Services , “IP professionals in the oil and gas industry may well have reached for the popcorn. Battles of this magnitude rarely break out in their slice of the patent world.”
Halliburton and Aramco may be the goliaths in Houston’s patent world, but they’re not the only local organizations to appear on the Patent 300 list for 2022. Other Houston-area companies that made the cut are:
- Spring-based Hewlett Packard Enterprise, No. 84. The tech company received 511 U.S. patents in 2022, down 4 percent from the previous year.
- Houston-based SLB (Schlumberger), No. 117. The oilfield services company received 372 U.S. patents in 2022, down 14 percent from the previous year.
- Houston-based Baker Hughes, No. 123. The oilfield services company received 350 U.S. patents in 2022, down 11 percent from the previous year.
- ExxonMobil, No. 156. The oil and gas company received 281 U.S. patents in 2022, down 8 percent from the previous year. It is in the process of moving its headquarters from Irving to Spring.
- United Imaging Healthcare, No. 253. The Chinese healthcare equipment company, whose North American headquarters is in Houston, received 175 U.S. patents in 2022, up 31 percent from the previous year.