Financial Valuation Methods for Intellectual Property
15 patents in this list
Updated:
Intellectual property valuations require sophisticated modeling to account for multiple value drivers - from technical merit and market applicability to legal strength and commercialization potential. Current methodologies struggle to capture the complex interplay between citation networks, technology lifecycles, and market dynamics that determine a patent's true worth.
The fundamental challenge lies in developing objective, reproducible valuation frameworks that can account for both quantitative metrics and qualitative factors while remaining responsive to rapid technological change.
This page brings together solutions from recent research—including machine learning approaches that leverage comprehensive data layers, blockchain-based platforms that provide transparent valuations, regression models built on specification characteristics, and systems that incorporate dynamic market indicators. These and other approaches aim to bring greater standardization and reliability to IP valuation while maintaining flexibility for different technology domains.
1. Multiple Regression Model for Patent Valuation Using Structural Specification Characteristics
Korea Invention Promotion Association, 2023
Quantifying the value of a patent using a multiple regression model to build a reliable patent valuation model that reflects structural characteristics of specifications and accurately values patents. The regression model is built by processing patent information and performing multiple regression analyses with key valuation elements as dependent variables. The representative regression coefficients for each independent variable across the analyses are used to generate valuation models for each valuation index.
2. Method for Assessing Patent Value Using Index Based on Relative Document Strength
astamuse company,Ltd., 2023
Evaluating the value of intellectual property, such as patents, using an index based on relative document strength rather than absolute values. The method involves acquiring a group of documents related to a patent, evaluating each document's value based on parameters and patenting weights, and using those values as an index of the patent's relative strength within the document group.
3. Decentralized Blockchain Platform for Intellectual Property Asset Registration and Management with Smart Contracts
ERICH LAWSON SPANGENBERG, DANIEL LAWRENCE BORK, PASCAL ASSELOT, 2023
A decentralized blockchain-based platform to register, transfer, license, apply for, and value IP assets, such as patents, using smart contracts. The blockchain provides transparency and security while the smart contracts automate processes like patent transfers.
4. Blockchain System for Patent-Based Crowdfunding with Value Coin Issuance and Transaction Mechanism
Sung Yong LEE, 2022
A blockchain-based crowdfunding platform that connects inventors with investors to enable industrializing patents and technologies. The platform issues value coins based on patent valuation and funding amounts. Investors can fund patents using electronic coins, with successful commercialization yielding returns in electronic and value coins.
5. Semi-Automated Patent Valuation System with Machine Learning Utilizing Multi-Layer Information Database
Owners Capital GmbH, 2022
Semi-automated valuation of patents using machine learning that leverages a database of information layers like megatrends, market indicators, financing figures, etc to provide a more holistic and dynamic valuation of patents. The system builds a machine learning model comparing patent info to refine valuations with user input and forecast changes as relevant information layers change over time.
6. Patent Evaluation Tool with AI-Driven Quality Scoring Using Citation Network Analysis and Random Walk Algorithm
ERICH LAWSON SPANGENBERG, DANIEL LAWRENCE BORK, PASCAL ASSELOT, 2022
A patent search and analysis tool that provides a quality score for evaluating patents. The tool uses AI, machine learning, and data mining to analyze multiple factors correlated with patent value. This includes the patent's citation network and the value assigned to it by the patent owner. By performing a random walk on this weighted network, the tool calculates a "Qscore" to rank the commercial potential of patents.
7. System for Patent Valuation and Transaction Using Standardized Parameter Set and Dynamic Database
FOSHAN CITY MU JI INFORMATION TECHNOLOGY LTD., 2021
A user-centric system to carry out the valuation and transaction of patents. The system uses a standardized set of parameters to provide an objective and representative valuation of patents. The parameters include applicant and inventor experience, technology applicability, risk factors, and a dynamic database that allows rapid updating of patent values.
8. Patent Investment System with Debt and Equity Financing, Diversified Portfolio Pooling, and Performance Analysis Tools
ERICH LAWSON SPANGENBERG, Brian Joshua Berman, 2021
A combined patent debt and equity financing system that allows investors to invest in patents through loans or equity, and provides tools to analyze and manage patent investments. The system allows the pooling of patents across multiple owners to create diversified portfolios. It also involves a fantasy draft-like game where users can pick patents they think will perform well. The system provides analysis and tracking of patent performance to inform investment decisions.
9. System for Managing Inventorship Value Data Records with Variable Assignment Rights
Cheryl Milone COWLES, 2021
Creating, processing, tracking, updating, and quantifying a new data record associated with inventorship value. The new data record may be based on an incentive to create inventorship value for inventors where inventors assign their rights under US or international patents, contracts, or other laws to their employers. This is generally true in the US with US companies holding the majority of US patents today. In the US, statutory and contract law (such as the Uniform Commercial Code (the UCC) or state laws, generally govern rights and obligations regarding patents, including between inventor(s) and other stakeholders (such as entities which employ the inventor and to whom the inventor is obligated to assign the patent). Laws and precedents under international jurisdictions can be evaluated for their respective approaches. As a result, under standard agreements, such as employment agreements, work-for-hire terms, assignment agreements, or provisions, inventors relinquish ownership of the patents and with it, at least a portion or all of, the financial value associated with the patent asset.
10. Apparatus for Quantifying Patent Obstructiveness Using Legal Procedure Data and Post-Obsolescence Cost Calculation
Ichiro Kudo, 2020
Evaluation of the exclusive power of a patent by quantifying the extent to which the patent obstructs third-party businesses. The calculation apparatus extracts legal procedure data from patent histories to determine how obstructive the patent was to third parties and then calculates a post-obsolescence cost based on the filing date. The total post-obsolescence costs across all extracted patents provide an evaluation of patent power.
11. Blockchain-Based Decentralized Network for Intellectual Property Rights Management with Smart Contracts and Secure Storage
ERICH LAWSON SPANGENBERG, DANIEL LAWRENCE BORK, PASCAL ASSELOT, 2020
A decentralized network using blockchain to provide a transparent and efficient platform for managing intellectual property rights. It leverages blockchain's features like smart contracts, secure decentralized storage, and transparent transactions to improve the patent ecosystem with features like simplified patent registration, transparent ownership, valuation tools, automated examination, and streamlined licensing and transfer processes.
12. Method for Determining Patent Monetary Value Using Citation Analysis, Legal Status, and Commercial Data Integration
Huawei Technologies Co., Ltd., The Chancellor Masters and Scholars of the University of Oxford, 2020
Method for accurately determining the monetary value of a patent based on factors like forward and backward patent citations, legal status, patent family, and commercial data of the patent holder. This provides a comprehensive evaluation that considers technical, legal, and market aspects. The method involves obtaining patent information, commercial data of the patent holder, and technology market details. It then evaluates the patent's value based on factors like citations, status, and breadth. The evaluation can be done using a computer program that analyzes the data.
13. Method for Quantifying Patent Portfolio Strategy Misalignment via Value Gap Score Based on Comparative Focus Area Rankings
International Business Machines Corporation, 2020
Identifying a value gap in a patent portfolio strategy of an organization to measure the misalignment between the organization's patent strategy and the universal market focus and quantify the business impact. The method involves comparing the organization's internal ranking of focus areas with a universal ranking based on factors like market size, potential, and trends. The difference between the rankings represents the value gap score, indicating the penalty for misaligned strategy.
14. Patent Valuation Method Utilizing Dynamic Database with Quantifiable and Unquantifiable Parameters and Mathematical Scoring Models
FOSHAN CITY MU JI INFORMATION TECHNOLOGY LTD., 2020
Valuing patents using a dynamic database, quantifiable and unquantifiable parameters, and mathematical models. The method involves gathering patent information, establishing representative valuation parameters, comparing parameters against the patent data, and using models to assign scores. Parameters include applicant experience, technology maturity, legal risk, and more. The dynamic database allows targeted data retrieval.
15. Apparatus and Method for Calculating Patent Power via Legal Procedure Data Extraction and Cost Analysis
Ichiro Kudo, 2018
An apparatus and method for evaluating patent power using patent history data. The invention extracts legal procedure data from patent histories and calculates a post-obsolescence cost based on the procedures performed by third parties like requests for inspection or invalidation trials. The extracted procedures are matched to costs in a table. Post-obsolescence costs are calculated based on the filing date, procedure dates, and obsolescence functions for the technical field. Totaling the costs provides an evaluation of the patent's power.
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With the help of these developments, organizations may better traverse the challenges associated with intellectual property value. Businesses are able to realize their full potential and make decisions that will lead to long-term success by strategically evaluating the value of their intellectual property.