Patent valuation is a process that enables the determination of the financial, strategic and competitive value of a patent. Patents are among the important assets that offer businesses a competitive advantage in the field of technology. Therefore, how valuable a patent is can be decisive in many processes from investment decisions to licence agreements.
Revenue-based, cost-based and market-based methods are generally used in the valuation process. In the revenue-based method, the future revenues and commercial potential of the patent are calculated.
In the cost-based method, R&D expenditures and similar costs incurred for the development of the patent are taken into account. In the market-based method, the sales or licence prices of patents with similar technologies in the market are compared. These three methods are used to determine the economic value of the patent and offer different perspectives.
Patent valuation helps businesses determine their investment strategies, evaluate licensing and partnership opportunities and strengthen their financial reporting. At the same time, it enables the company to determine its position in the market more clearly by revealing the value of the patent portfolio in merger and acquisition processes.
In today’s world where technological innovations are developing rapidly, it is of great importance to evaluate patents accurately. An accurate valuation process provides businesses with a competitive advantage, while enabling effective management and optimal commercial utilisation of patents.