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    The Value of Patents: Methods for Their Appraisal
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    The Value of Patents: Methods for Their Appraisal

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    Patents today constitute 80-90% of the assets of many companies. Learn about the three fundamental approaches to calculating the economic value of a patent: cost, income, and market.

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    💡 The Most Valuable Invisible Asset

    From 1980 to the present, the trend has changed: today, 80-90% of assets in many companies consist of intangible assets such as patents, trademarks, and other intellectual property registrations.

    The Three Approaches to Valuing a Patent:

    💰 1. Cost Approach

    The value of the patent equals the research and development costs. Useful for internal management, but may underestimate or overestimate the real value in transactions.

    📈 2. Income-Based Approach

    The value is proportional to the income stream that the owner expects to obtain during the protection period. Ideal for new investors. Requires accurate and reliable data.

    🏪 3. Market-Based Approach

    The market is analyzed to determine value by comparing with similar patents. Complex due to the novelty requirement, but with a good database it can be very precise.

    These approaches should be analyzed considering: protection period, countries of registration, technological sector, relationship with other patents, licenses granted, and prior art.

    Written by

    Equipo AZC

    April 1, 2016