Patent Valuation

Enhance business impact through patent valuation

Sagacious IP’s Patent Valuation service enables you to determine the monetary value of your patent which in turn impacts your R&D efforts, bolsters your intellectual property rights and enhances revenue, stock performance, and reputation.

Detailed patent valuations that are cost-effective and time bound

Perform patent valuation services for:

Testimonials

We at Sagacious IP have developed a comprehensive yet cost-optimized approach to value a patent. The approach involves the right value indicators as per the subject patent and applicable market.
Here are the salient features of our methodology:

Patent valuation is an approach to calculate real market value of the patent so patent owners can generate money from their intellectual property. There are three major approaches (as shown in this figure by WIPO) used in industry for this (however, we will talk about a fourth more efficient approach of patent valuation below):

Since patents are important intangible assets of any business, it is essential for investors to be able to calculate and account for the value of a patent, in case of an investment, merger or acquisition.

Although regulatory organizations have established patent laws, no law describes specific patent valuation requirements.

Because patents are intangible assets, assigning them a financial value is often hard, time consuming and costly.

Lets begin with Why Patent Valuation Matters

Patent valuations is one of the most important item of an IP strategy,

There might be a case that the patented technology is revolutionary; however, it requires significant changes in current products worldwide to make it publicly available. In such cases, the industry might be apprehensive to adopt the patented technology.

If an inventor has an item patented by him or her, the value of the patent would be the amount of money needed to replace that invention. A prospective client would not be willing to pay more for a patent than the amount he or she would have to pay to obtain an equivalent right of protection.

When a business or a person develops a product with the ability to be patented, the fundamental hope is the item being patented will result in a rise in revenue or at least be a cost-saving measure in the business. This strategy states that the value of the patent is the actual cash value of these future advantages. In other words, the value of the patent is roughly equivalent to the value of previously sold and bought comparable patents or patented products.

For this strategy to be used for patent valuation, two factors must be in place: Existence of an active market for the patent, or a similar one Past transactions of comparable property Look for similar values when searching for comparable patents for the following products: Industry characteristics Market share or market share potential Growth businesses.

Considering gaps and difficulty in valuing patents using above three approaches, Sagacious IP (a leading provider of patent valuation service) has developed a unique proprietary approach named named Hybrid Patent Valuation which combines best of all approaches and bring down pricing and timelines of expert patent valuation by almost 1/5th. It enables customers to prioritize their IP assets more efficiently and monetize their portfolios.

The Hybrid approach for patent valuation takes into account the following parameters:

After evaluating the patent on the basis of these key factors, a Net Present Value is calculated, and corresponding licensing fees or market value is given.

More details of this hybrid methodology can be found here (How To Adopt An Intelligent Approach to Patent Valuation – Sagacious IP

(How To Adopt An Intelligent Approach to Patent Valuation – Sagacious IP)

Impact Stories

Impact Story 1

Sagacious helped two SMEs in getting a more practical value of their patents. This valuation was used to raise funds for their businesses.

Impact Story 2

Sagacious IP has been assisting patent owners extract the maximum value of their patents listed by various patent brokerage firms. We have also generated claim charts in many cases and used the infringed product sales for incorporating damages calculation in the final valuation.

FAQs

Patent Valuation is the process by which one can calculate the actual market value of the patent or patent portfolio. Companies or inventors must perform patent valuation while negotiating deals such as mergers, acquisitions, sales, or licensing of patents.

Any company or organization looking for M&A, licensing, portfolio sales, and investments shall get the portfolio evaluated to derive maximum value.

Conventionally, patent valuation can be performed using three main approaches – market approach, income approach, and cost approach. In the income approach, the value of a patent will be the current value of cash flow or cost savings that it will provide. In the market approach, the value of a patent is the amount a prospective buyer will pay for a similar product/service while the cost approach shows that the value of a patent is the replacement cost, i.e., the amount that it will cost to replace an invention.

At Sagacious, we follow a hybrid approach that involves market analysis and a rigorous analysis of the patent under study. The first part of the hybrid approach indeed gives us an expected value. However, different factors affect the applicability of a patent. These factors need to be considered together to understand the actual worth of the patent under study.

In the IP industry, the average cost of valuation study per patent lies anywhere between USD 3000 to USD 5000. However, at Sagacious, we follow a hybrid approach where the process can be customized as per the needs of the client. Thus, we can do it at less than half the average cost per patent prevalent in the industry.

The scope of the patent claims determines its applicability. It helps in determining the infringement potential of the patent. An infringing patent has much more monetary value than the non-infringing one.

Make business-critical decisions powered by accurate patent valuation.

On-Demand Webinars

Webinar

Monetizing Patents: Selling vs Licensing, Core vs Non-Core

Webinar

Patent Portfolio Pruning: Realizing Immediate Cost Savings

Webinar

F3 Analysis: A Solution for Strategic Optimization of Patent Portfolio

Webinar

Directed Prosecution: Generating Future Value from Your Patent Portfolio

Connect With Sagacious IP Contact Us

Monetizing Patents: Selling vs Licensing, Core vs Non-Core

Patent Portfolio Pruning: Realizing Immediate Cost Savings

F3 Analysis: A Solution for Strategic Optimization of Patent Portfolio

Directed Prosecution: Generating Future Value from Your Patent Portfolio