Consumer Electronics

Extract from a longer article on the evolving role of patents as B2C industries shift toward technology-based competitiveness.

In the Consumer Electronics (CE) segment, digital innovations including smart home integration, AI-powered appliances, and IoT-enabled diagnostics are making household electronics increasingly intuitive and user-friendly. Meanwhile, functional improvements in battery technology, sensor precision, and material durability are enhancing product functionality, extending lifespans, and reducing long-term costs for consumers.

Sustainability is a key driver of the industry’s evolution, pushing companies toward a circular economy where products are designed for repairability, recyclability, and minimal waste. As consumers and regulators demand eco-conscious innovation, companies are responding with patented modular designs, recyclable materials, and closed-loop manufacturing processes. These innovations reduce environmental impact but could also create new revenue steams related to repair services, refurbished product lines, and sustainable material recovery.

In the context of sustainability and the circular economy, patent strategies also need to evolve. Traditional, linear business models often use IP to prevent competitors from accessing or reusing proprietary technologies. However, applying this same logic to circular business models can stifle innovation, limit market growth, and risk reputational damage. Circularity demands a shift from protection to enablement, where patents are also used to scale sustainable solutions and revenue.

In this segment, ‘Rapid Expanders’ like Haier are filing patents in sustainable materials, modular product design, energy efficiency, and recyclability. ‘Consistent Innovators’ including Dyson, Miele and Husqvarna are steadily investing in technologies related to waste reduction, repairable components, and closed-loop manufacturing to maintain their competitive positioning. Many more companies in this segment qualify as ‘Sporadic Filers’ or ‘Dormant Players', holding negligible patent positions.

Examples of how Consumer Electronics companies use patented technologies to establish competitive edge and enable circular business models

Panasonic advances green innovation through strategic patent initiatives

Panasonic has established a patent portfolio supporting its Green Transformation (GX) strategy, focused on enhancing energy efficiency and sustainability in consumer electronics. In August 2022, Panasonic became the first Japanese company to join the Low Carbon Patent Pledge, offering royalty-free licensing for selected green-technology patents, such as high-efficiency artificial photosynthesis. Panasonic has also partnered with LG Energy Solution, licensing over 5,000 lithium-ion battery patents to advance rechargeable battery technologies for smart home products and cordless appliances. Through its patented sustainable innovations, Panasonic aims to strengthen its leadership position in environmentally friendly consumer electronics, potentially accelerating the dissemination of energy-efficient technologies with reduced environmental impacts.

Dyson’s road to a balanced approach in sustainability-driven innovation

Dyson has built a patent portfolio centred around modular designs and energy-efficient technologies for vacuum cleaners and air purifiers. For example, these patents protect innovations that facilitate easy removal and replacement of components, allowing consumers to repair or upgrade products rather than discarding them. By securing patents on sustainability-focused designs that enhance repairability and minimise electronic waste, Dyson seeks to control key differentiating solutions and sustain its premium market position. As the shift toward circular business models accelerates, Dyson’s patents could enable the company to seek broader adoption through licensing and ecosystem-based models tied to e.g. repair services and sustainable material recovery.

Husqvarna seeks competitive advantage through patented battery-powered technologies

Husqvarna has expanded its battery-powered product range, with electrified motorised products increasing from 11% in 2015 to 43% in 2023, aiming to reach two-thirds by 2026. This shift addresses growing consumer demand for eco-friendly equipment and reduces carbon emissions. To differentiate its offerings, Husqvarna has secured patents covering technologies like a battery adapter assembly designed to improve battery efficiency in handheld power tools, and resource-consumption measurement systems enabling users to optimise energy use. Through these patents, Husqvarna seeks to reinforce its leadership in sustainable product development and may seek to leverage its control positions to accelerate market adoption of, and revenue from, sustainable solutions.

Circularity in Consumer Electronics demands a shift in how patents are viewed, from restrictive barriers towards strategic enablers. To scale sustainable solutions, leading Consumer Electronics companies are reconsidering patent use, aiming to stimulate innovation, collaboration and new revenue models across the value chain. While outcomes vary, businesses that strategically leverage their patents, may be better positioned to accelerate adoption of circular technologies and drive meaningful environmental and economic progress.

Conclusion

From tech-enhanced fashion to zero-waste food production, technology is reshaping innovation and competition in the consumer goods sector. As technology-based competitiveness becomes increasingly important, companies must make deliberate, business-driven decisions about how they approach patents.

For “Rapid Expanders”, challenges include to avoid over-filing or filing in areas that don’t add value, and to ensure patents are actively used to support business goals – not left as inactive cost items on the P&L.
“Consistent Innovators” must regularly recalibrate their efforts to stay aligned with evolving strategic priorities and market dynamics. Like the Expanders, they must also ensure that their patent portfolios are actively leveraged, rather than quietly accumulating as overhead cost.
“Sporadic Filers” may need to reassess whether an opportunistic approach is sufficient in the long term. If investment increases, systematically selecting the right areas is key to making patents count and avoiding unnecessary cost.
“Dormant Players” must consider whether they can afford the risk of having no patent position in a tech-driven market, and whether they have the innovation capabilities needed to start building meaningful portfolios.

Independent of profile, companies need a business-driven and proactive approach to patents, both to stay ahead and avoid being caught off guard. This means being able to clearly answer:

Why are we (or aren’t we) investing in patents? What is the intended impact on revenue, cost, and risk?
Are we organised for proactive and impactful IP management? Do we have the right stakeholder interfaces?
Do we have the capabilities and skillsets needed to execute effectively?

Without clear answers to these questions, patent departments in consumer goods companies may struggle to compellingly articulate the value of patents and their contribution to technology-based competitiveness. This increases the likelihood of being seen primarily as cost centres, making it difficult to secure appropriate investment. Ultimately, companies may face misalignment between their business and technology ambitions, falling short in protecting and capitalising on them.