Patent Valuation Services | IP Consulting Firm

Patents are a crucial portion of a company’s assets. Patent Valuation is the process by which one can calculate the actual market value of the patent or patent portfolio. Companies and inventors must perform patent valuation while negotiating deals such as mergers, acquisitions, sales, or licensing of patents. Patent value is an important factor to consider in M&A, dissolution, bankruptcy, and infringement analysis.

Ingenious’ Methods of Patent Valuation

Income Based Method – This method considers the actual market value, i.e., intrinsic to the expected income flows it generates. It can be defined as a method to measure the potential future benefits in terms of the present value.
Cost Based Method – This method is based on the fact that the value of patented technology relies on the factor that the cost of developing the reproducing or replacing the given technology is directly proportional to the cost of patented technology.
Market Based Method – This method relies on the market transactions of similar technology. This method evaluates the cost based on licensing or any selling deals of similar technology.

Methods of IP Valuation Services - Ingenious e-Brain

Case study

A messaging application company.

Request

Few IP assets of the company received interest from several parties for purchase. Ingenious e-brain was assigned to value the IP assets to provide a fair value for the sale of the patents.

Results

Delivered an end-to-end valuation process for the client.
The determined value of 3 assets of the client.
Ensured that fair value was paid for IP assets.

Our approach

We prepared an understanding of the domain of the patents. For each patent, we derived values for each of the following parameters:

Patent Core Value

It includes patent parameters such as remaining life of patent, Forward citations, Backward citations, References cited by examiner, Claim Strength, No. of independent claims, No. of dependent claims, Patent families, Timely payment of maintenance fees, and Litigation cases involving the patent.

Market Domain Value

Market size of the technology, Potential Licenses, Applicable Market, Remaining life of the patent, and Ease of implementation.

Technology Strength Value

Technology Advancement, Technology Life and possible Workaround.

After analyzing the patent, market, and technology strength of the patent, a Patent Valuation Parameter (PVP) of each patent was calculated. Based on this PVP value, a price range is calculated for each patent.

Ingenious Helps Clients in Patent Valuation for Following Reasons

Funding

Patents can be used as collateral to raise funding or get a loan.

Licensing

To evaluate potential patent licensing revenue.

Defensive approach

A means to seek a license fee/purchase cost for a patent.

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