Patent
Would you like to know the value of your ideas?
Overview
While companies know about the value of even a screw in their assets, many times they are not aware of the tremendous value their IP assets can bring.
Since Intellectual property(IP) is an intangible asset, assigning a dollar value to it can be very difficult. There are different factors which contribute to the monetary value of patents.
Need
We can use a variety of methodologies to see if a patent would be a cash cow or not.
- In Negotiations, while selling or licensing intellectual property rights as it is essential to reach an agreement in good faith.
- During Conflicts and Disputes where your IP is being infringed
- While Evaluating the value of the company for an M&A, JV or when filing bankruptcy.
- In Defining a strategy for patent protection
Methodology
ResearchWire has developed proprietary methods to evaluate patents that use a
combination of various methods to find the value of patents quantitatively as well as qualitatively.
Quantitative valuation uses measurable data to calculate the value of patents. This approach includes metrics like
- The cost of obtaining the IP
- The cost of similar market transactions in the industry
- The cost of creating a similar technology
There are four methods that are widely used to find patent values in the quantitative approach.
- Cost Based Method
- Income Based Method
- Market Based Method
- Option Based Method
Quantitative valuation includes assessing the IP through a non-monetary lens, such as its
- Technological impact
- Strategic impact
- Brand loyalty
and other intangible metrics that will help you come up with a credible value for the patent.
There are three methods that are widely used
- Value Indicator
- Rating Approach
- Competitive Advantage
