Which patents should you renew in your IP portfolio?

Managing a patent portfolio means constantly deciding which patents still justify their renewal costs and which ones no longer do.

Each patent renewal decision comes with official charges and service costs that accumulate into significant patent renewal fees over time . Because of this, deciding whether to maintain protection is not simply an administrative task. It is an important element of IP strategy and long term patent portfolio management.

Based on our 2025 Patent Lifecycle Report between years 8 and 11, patent portfolios typically enter the pruning phase, when organizations begin discontinuing patents that don't deliver measurable business value. Portfolio reviews show a similar dynamic. In a review of a mid-sized electronics company, around 18% of patents were identified as having no remaining commercial or strategic value, and discontinuing those assets reduced annual patent maintenance costs by more than $2 million.

This guide explains how to approach patent renewal decisions, what factors determine whether a patent should be maintained, and how to review patents within a structured portfolio strategy.

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TL;DR

• Patent renewal decisions should be based on whether a patent still delivers meaningful economic or strategic value compared with its remaining patent renewal fees.
• Companies typically evaluate revenue relevance, competitive positioning, geographic importance, licensing potential and the lifecycle stage of the technology before deciding which patents to renew.
• A structured approach to patent portfolio management ensures that patent renewal budgets are focused on patents that continue to support innovation, market advantage and long term IP strategy.

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Why not renew every patent?

Patents can remain in force for up to twenty years in most cases, but maintaining them requires regular payments to national patent offices. These payments, commonly known as patent renewal fees, are designed to increase gradually throughout the life of the patent.

A global patent cost analysis also shows how strongly costs concentrate in the later years of a patent’s life. Around 71% of total maintenance costs occur after year 10 of protection. The share is even higher in some major jurisdictions, reaching 88% in Germany, 80% in China, and 83% in Korea.

This shift happens because many jurisdictions introduce their largest annuity increases around this stage of the lifecycle. In fact, our data shows that 28.13% of countries increase renewal fees by more than 25% compared with the previous year at this point.

This structure serves an important economic function. It encourages patent owners to maintain protection only for inventions that still justify the cost of maintaining exclusivity.

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How do companies evaluate whether a patent should be renewed?

When approaching patent renewal deadlines, IP professionals usually assess several dimensions of value. These evaluations combine financial considerations with strategic and market related factors.

The following questions form the core of most professional patent renewal analyses:

Does the patent still protect a commercially relevant technology?

The most direct reason to continue paying patent renewal fees is when a patent protects technology that supports existing or upcoming products.

If a patent covers a feature that remains central to a company’s offering, losing that protection may expose the product to direct imitation. In such cases, maintaining the patent is usually considered essential.

When reviewing patent renewals, companies usually ask whether the patented invention:

• Protects a product currently generating revenue
• Supports a technology still present in the company’s roadmap

When a patent continues to support core technology, the cost of patent renewal is typically justified because it preserves a barrier against imitation.

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Does the patent strengthen the company’s strategic position?

Some patents create value even when they are not directly tied to a specific product.

For example in technology intensive sectors such as electronics, biotechnology and telecommunications, portfolios frequently include patents maintained primarily for defensive or strategic reasons. 

A patent may be maintained because it:

• Prevents competitors from entering a technological space
• Supports cross licensing agreements
• Strengthens negotiating leverage during collaborations
• Protects research directions that may become important later

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Does the patent provide a competitive advantage?

Patent value is also shaped by activity within the surrounding innovation landscape. Companies often monitor competitor filings and technological developments before deciding which patents to renew. When competitors are actively developing related technologies, maintaining protection becomes more important because the patent may serve as a barrier to market entry.

Patent renewal decisions therefore often involve examining whether the patent contributes to maintaining a competitive advantage. Key questions include:

• Are competitors working on similar technologies?
• Could the patent block competing products or processes?
• Does the invention occupy a strategic technological position?

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Should the patent be maintained in every country?

Patent families are frequently validated across several jurisdictions. However, maintaining protection in every country is rarely necessary. Companies typically consider whether a country:

• Represents a significant market for the patented technology
• Hosts manufacturing activities linked to the invention
• Contains key competitors
• Provides realistic enforcement opportunities

If none of these conditions apply, the cost of maintaining protection in that jurisdiction may not be justified. 

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Can unused patents still justify renewal?

Even when a company no longer uses an invention internally, the patent may still possess economic value. Patents can generate revenue through licensing arrangements that allow other organizations to use the protected technology in exchange for royalties. In other cases patents can be transferred through sale or included in broader technology transactions.

For this reason, patent renewal decisions sometimes depend on whether a patent retains potential licensing value. If the technology remains relevant to other market participants, maintaining the patent may support future monetization opportunities.

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Does the stage of the technology lifecycle influence the renewal decision?

In the early years after filing, companies usually renew patents almost automatically. Our report shows that around 98% of patents remain active until year 6, mainly because renewal costs are still relatively low and companies are still testing the commercial relevance of the technology.

As technologies move closer to market, the role of each patent becomes clearer. Companies can now see whether the invention supports a product, strengthens their position against competitors, or creates licensing opportunities. This is often the point where renewal decisions shift from routine maintenance to deliberate patent portfolio management.

Later in the lifecycle the financial stakes increase. After year 12, the remaining patents typically represent the strategic core of the portfolio. Patent renewal fees continue to rise and companies maintain protection intentionally only for patents that protect technologies with clear commercial or strategic importance.

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How should companies structure patent renewal reviews?

A structured patent renewal review prevents patents from drifting into expensive lifecycle stages without a deliberate decision. The most effective approach starts with classifying patents by business purpose. Not every patent plays the same role in a portfolio, and patent renewal decisions should reflect that.

IP teams typically group patents into categories such as:

• Core patents that protect active or planned products
• Licensing assets that may generate revenue through licensing agreements
• Defensive patents that block competitors in specific markets or technologies
• Low-priority patents that no longer support current business activity

This categorization should not be treated as a one-time exercise, rather an ongoing process. Review your portfolios once per year or before major renewal milestones, such as the higher-cost renewal years later in the patent lifecycle.  

After categorizing, the review becomes more practical and focused:

• Confirm jurisdiction relevance for core patents. Check where the product is sold, manufactured, or where competitors operate.
• Assess licensing assets. Ensure ownership records, patent families, and claim scope support potential licensing or enforcement.
• Evaluate defensive patents. Keep them only in jurisdictions where competitors or market activity justify their presence.
• Flag low-priority patents early. Mark them clearly so they do not automatically move into higher patent renewal fee years without a conscious decision.

As portfolios grow, maintaining clarity across renewal schedules, jurisdictions, and costs becomes increasingly challenging. Monitoring deadlines, verifying official fees, and understanding the real cost structure behind each renewal requires accurate data and reliable processes.

If you want to understand how your current IP renewal setup compares, you can sign up for a free patent renewal cost audit. The review highlights potential cost differences against optimal market rates and provides a detailed, itemized breakdown of renewal-related fees.