Value assessment
What is a patent worth?
Fundamentally, a patent is an exclusive right that prohibits others from using the patented technology. A patent by itself is not a guarantee for financial income for the patent proprietor. However, patents can be very valuable even though it is hard to calculate the precise value.
Depending on the circumstances, the patent can represent value in the following ways:
- Potential for additional sale of products or services because competitors can not use the patented technology
- Potential for increased product or service prices because competitors can not offer products or services utilizing the technology
Patents can also provide value in other ways by highlighting your company as an attractive collaboration partner:
- A patent demonstrates the innovation of your business and that you are capable of developing patentable technology
- You have access to the patented technology
- A patent can be used to “trade” rights with another proprietor through cross-licensing, which can give both companies an advantage
There are some key aspects to consider if you want to sell a patent. You need to assess the value that a prospective buyer stands to gain from acquiring the patent. These may be pieces of information that you, as a seller, do not have access to. However, having a thorough evaluation and valuation of the potential benefits can be very useful when negotiating the best possible price.
In practice, it is hard to put an exact price on the value of a patent. But VALUAs experts can help you to the best possible estimate in close collaboration with you. We can help you with questions such as:
- What is my patent worth?
- Should I invest in a patent right or other intellectual property rights?
- How do I optimize the return on my innovation?
When assessing the value of a patent, it is important to take the context of a patent right into account. The valuation depends on important factors such as how broad your scope of protection is, the strength of your patent, and the enforceability of your right. Additionally, VALUAs analysis may cover the technological field and the economical significance of the individual right. Further, we consider the market potential for the protected technology and the business proposal behind the patent.
When you contact VALUA for a value assesment, you will receive a thorough and in-depth mapping of e.g.:
- The scope of the patent protection
- Relevant rights
- The technological field and relevant competing rights
- The technical and economic relevance of the intellectual property rights
We know that an accurate value assessment is essential as a tool in connection to license and contract negotiations. It might also be crucial when decisions regarding in-licensing and acquisition or sale of a right must be made. In case of divestment or out-licensing, a broad market strategy might significantly increase the value of the specific right, so the correct analysis might reveal a potential for segmentation that increases the overall value of the patented technology.