Valuation and Assessment of Patents and Patent Portfolios Through Analytical Techniques

Name

Valuation and Assessment of Patents and Patent Portfolios Through Analytical Techniques

Cite

6 J. Marshall Rev. Intell. Prop. L. 463

Year

2007

Bluebook cite

Michael S. Kramer, Valuation and Assessment of Patents and Patent Portfolios Through Analytical Techniques, 6 J. Marshall Rev. Intell. Prop. L. 463 (2007).

Author

Michael S. Kramer

URL

6 JMARRIPL 463

Item Type

article

Summary

"This article presents methodologies employing statistical analyses of patent characteristics and information about patents to quantitatively value patents and patent portfolios. It is proposed that essential patents of technical standards are more valuable, on average, than the general population of patents. Measurable differences among the characteristics of essential patents and patents generally are relied upon as the basis for establishing formulations employable to predict patent value. The formulations utilize accessible patent data to efficiently quantify value for a patent or portfolio of patents of interest.


The clearest application of patent and patent portfolio assessment is in the arena of patent licensing. Often, licensing transactions are straightforward, involving one or a limited number of patents that have clear commercial analogs, making accurate valuation tenable. Accurate assessment can be cumbersome in more complex transactions, such as significant cross licensing negotiations. Such deals can involve multiple patents of various magnitudes, perhaps covering disparate technologies, and sometimes uncertain commercial applications. Likewise, patent rights are at the forefront in changes of business structure, such as mergers, acquisitions, and spinoffs. Issues of infringement indemnification, license exclusivity, and royalty structure are among the critical elements to be resolved in organizational changes of technology companies. Further, relationships between growing technology developers and established technology integrators can be manipulated when patent rights are erroneously estimated."

Excerpts and Summaries

Created

Thursday 29 of January, 2009 16:47:48 GMT
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LastModif

Monday 02 of February, 2009 19:24:42 GMT
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