A Macro-Economic Model Providing Patent Valuation and Patent Based Company Financial Indicators

Name: A Macro-Economic Model Providing Patent Valuation and Patent Based Company Financial Indicators
Cite: 83 J. Pat. & Trademark Off. Soc'y 211
Year: 2001
Bluebook cite: Richard A. Neifeld, A Macro-Economic Model Providing Patent Valuation and Patent Based Company Financial Indicators, 83 J. Pat. & Trademark Off. Soc'y 211, 216 (2001).
Author: Richard A. Neifeld
URL
Item Type: article
Summary: Article presents â€œa new and useful macro economic model for valuing patents. The model provides equations predicting the market share for products and services covered by a patent. . . . Applying income valuation theory to the annual net earnings provided by the patent for the remaining term of the patent results in a valuation for the patent. Extensions of the model to the time dependence of company patent portfolios provides patent based companies financial predictors. . . .â€

The Article discusses â€œthe importance of patent valuation, defines valuation, discusses the reasonableness of the axioms defining the macro economic model, extends the model to provide patent based company financial predictors, and then discusses methods for validating the results of the model.â€

â€œValuing patents is important for many purposes including determining business values, capital allocations, taxes, licensing rates, and patent infringement damages.â€

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