A valuation of a company’s patent portfolio or of a specific group of patents is important in helping the company to determine the value of its portfolio in a licensing transaction or in the sale of the company. It is important for companies to understand the drivers of value within their portfolios and to understand the strengths and weaknesses of the portfolios. Regarding valuations, many business executives have been asking us:
It is important to take a wide view of IP, to ensure full value of the portfolio, including patents, trade-secrets, dockets, and know-how. We identify the value of the market opportunity, through a market-down or a product-up approach. We then apply the tools and techniques that we have developed, to measure patent strength and to risk-adjust the portfolio for the risks specific to the IP. We develop a financial model that will help to determine a range of value, based on different market scenarios and product scenarios. Our practice has:
The process to value IP can be done cost effectively. Additionally, we can train companies in the process, which will allow them to update the model and repeat these processes in the future, so that they can have an understanding of the value of their IP and their strongest and weakest patents.
To obtain more information or discuss your unique challenges please contact us.