Patent Valuation
The objective of any patent is to monetise valuable assets and maximise investment returns. Identifying and analysing infringement risks alongside market and economic analysis helps defray costs associated with R&D, patent prosecution, PTO filings and develop monetisation strategies and new licensing opportunities that work best for the business.
The mere granting of a patent doesn’t elevate a business in the absence of targeted initiatives towards converting an essentially intangible asset into a profitable possession. Patent valuation plots the value of a patent along the lines of replacement costs, future cash inflow and market value in relation to other comparable patents. Estimating the Net Present Value and understanding the Future Value Forecast helps in formulating strategies to convert any non-core IP into a revenue yielding asset via licensing and trademarks. Conversely, it identifies opportunities to acquire high-value patents of third parties which can facilitate mergers and joint ventures to aid in widening the scope of one’s own patent profile. It protects the individual claims from any third-party attempts to invalidate them.
The outcome also encompasses other advantages such as attracting the right investors and capitalists who can augment a business’s efforts towards building strong patents and bringing them to market.
Patent Valuation additionally works to quantify damages in case of infringement and aids patentees in recovering said damages. Strong litigation analysis can prevent incurring heavy losses in the event of any accusations. Even if the alleged infringement claims are successfully invalidated, lengthy litigation and costs thereof can deplete any gains awarded as victory. Despite the challenges intellectual property presents in being valued in monetary terms, it is elementary in establishing the success of a company. To mitigate legal risks, protect one’s IP rights and clearly define the value of patents, the valuation process manifests as an indispensable tool.