Qualitative Patent Analysis for Building a Strong Patent Portfolio

PatSeer
2 min readJun 30, 2020

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Patents are intangible assets but can be traded and monetized as like any other asset class. During periods of slowdown in growth it is important to consider your patents as a source for generating for generating revenues. There are many options using which you can do this — patent licensing, enforcing, pooling, sale or brokerage, and via intellectual property banks. However, it should be noted that 90% of patents do not get commercialized for several reasons like not having sufficient supportable infringement position or claim language not being up to the mark; meaning that it is not simple and straightforward job to do.

An important step in patent monetization is getting to its value. Patents are outcome of an extensive research and significant degree of monetary expenditure hence you need to be sure that despite being an intangible item, theycan create a scalable value, cash-flow, and goodwill.

Generally (Traditionally) there are three main approaches to valuing patents:

  1. Cost Method
  2. Market Method
  3. Income Method

Each approach is a multi-step process involving diligence, analysis, and reporting. The complexity is not just limited to the information which a patent holds but also the language — in 2017 over 5.6 million patented documents were published globally of which more 62% were in Chinese, Korean, or Japanese language, with no English language equivalent at most times.

Find out how AI-powered qualitative and quantitative analysis helps you in better analysis of portfolios. More at — https://patseer.com/2020/04/qualitative-patent-analysis-for-building-a-strong-patent-portfolio/

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PatSeer
PatSeer

Written by PatSeer

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