Patent valuation is crucial for estimating the actual market value of patents, which are essential assets for institutions and organizations in the technology market. Transactions such as licenses, assignments, and loans that involve intellectual property rights require a precise understanding of the economic worth of the patent, emphasizing the significance of intellectual property valuation.Get a free quote
Einfolge’s patent valuation services help businesses understand the value of their IP by providing a value estimate based on ranking parameters according to industry benchmarks.
Patent valuation, along with other intangible asset valuations, plays a large role in determining the overall value of a company. The valuation of patents is not specific to certain industries or businesses, and in some instances, placing a value on patents is required. We are experienced in providing accurate patent valuation services to a broad range of businesses across several different industries. We review a client’s patent portfolio and assign metrics that support ranking and filtering on criteria such as relative technological strengths and weaknesses, future potential value, and potential licensing opportunities.
Our valuation services assist businesses in comprehending the value of their intellectual property by providing an estimated value for issued or published patent applications based on ranking parameters such as remaining life, forward and reverse citations, number of claims, length of independent claims, claim strength, market score, technology score, and commercial score.
What is patent valuation?
Patent valuation is a method used to determine the actual market value of a patent or patent portfolio. Inventors or organizations must conduct patent valuation when considering negotiating deals such as the sale and licensing of patents, coalitions, and acquisitions of intellectual property. There are many common techniques used for the valuation of intellectual property rights. When an analyst values intellectual property, they normally look at the intended future earning potential of that asset or company. The work of the analyst is to determine if an investment or an organization is undervalued or overvalued by the market while conducting a valuation.
Purpose of conducting a valuation
Evaluation is a crucial process since it can help identify mislaid securities or ascertain what projects a company should invest in. The main reasons are:
Purchasing or selling a business: Purchasers and sellers normally have a difference in the value of a business. At this point, if they opt for a patent valuation, they will get a clear picture of the market value of the related business, and they can wisely decide whether to sell or purchase, and at what cost.
Strategic planning: Any company that is planning to invest in a project should be aware of its future growth and financial value. Therefore, any investment decision is essentially a mini valuation depending on the prospect of future profitability and value creation.
Capital financing: When negotiating with banks or possible investors for funding, a correct patent valuation might be useful. Demonstrating the worth of a patent and its potential to generate cash flow can increase credibility with lenders and equity inventors.
- Patent valuation is a meticulous exercise that requires a set of skills, and Einfolge has a best-in-class team of experts for detailed patent valuation services.
- We apply the best logical methods to find out the valuation of the patent based on your purpose and requirements.
- Our patent valuation report will help you understand and state the terms and conditions of licensing better.
- Einfolge’s patent valuation report not only helps clients determine the true royalty of their patented invention, but it also assists in optimizing the costs of research and development.