IP Valuation

Nitin055120 Oct, 2022Business

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 essential factor to consider in M&A, dissolution, bankruptcy, and infringement analysis. Methods of Patent Valuation from Ingenious e-Brain Solutions: - ? 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, reproducing, or replacing the given technology is directly proportional to the cost of patented technology.