Patent Valuation Calculator
Patent valuation calculator is a free patent valuation or market valuation tool for a patent filed anywhere in the world. The patent valuation calculator provides a quick idea of what is the value of patent if a company acquires or buys the patent and implement the patent into the market. Patent valuation determined through below calculator follows a novel formula derived by ANS IP Management Services through rigorous analysis of performance of the product in different domains and patent licenses/sale happened in past. The demand value of the patent can be anywhere between 10-30% of the calculated patent valuation.
Several methodologies are used on the quantitative approach, but generally they can be grouped in four methods:
- Cost-based patent valuation method – This method is based on the principle that there is a direct relation between the costs expended in the development of the intellectual property and its economic value.
- Market-based patent valuation method – The market-based valuation method relies on the estimation of value based on similar market transactions (e.g. similar license agreements) of comparable patent rights.
- Income-based patent valuation method – This method is based on the principle that the value of an asset is intrinsic to the expected income flows it generates.
- Option-based patent valuation method – Differently from the other methods, the option methodology takes into consideration the options and opportunities related to the investment.
Although, the inventor is advised to seek a detailed report of the patent value along with proof-reading by a lawyer of the report to produce it legally or for any commercialization purposes. Such report can be sought through an IPR firm or valuation company at a cost ranging from ₹ 1,00,000- ₹ 2,50,000.
Please fill below form to estimate the value of your patent.
The patent valuation calculator adopts a big data based analysis and sums up the variables of previously done patent valuations through which successful patent commercialization has happened, into a simple formulae.
Steps for Patent Valuation:
- The above patent valuation calculation is activated by entering the patent application no. The applicant should enter only patent application no.;
- Enter the legal status of the patent application no. i.e. whether the patent application is granted or pending or lapsed;
- Enter a priority country into which the patent application is first filed;
- Enter the no. of countries in which patent family of the patent application has been filed so far;
- Enter a priority date of the patent application and enter the years left for the patent application i.e. (20-(Current Year-Priority Year));
- Please specify if the prototype of the patent application exist (a working prototype is preferable);
- Whether the product has entered the market and if yes how much revenue it has generated so far;
- Select the technical field of the invention/product from the drop down;
- Finally choose the no. of independent claims the patent application has;
On the basis of entered values, the patent valuation calculator shows you an approximate patent value. The approximate number can be justifiable by conducting in depth and detailed patent valuation report through an experienced patent valuation expert. For a verified patent valuation report, a patent value shown by all the above said methods should coincide with each other or should fall with in 10% (plus or minus) of the patent valuation shown by each method.
Further to this, the patent valuation report should also consider:
- Technical Valuation of the Patent – Technical valuation of a patent is an analysis methodology for forecasting the direction of prices through the study of past market data, primarily price and volume. Behavioral economics and quantitative analysis use many of the same tools of technical analysis which, being an aspect of active management, stands in contradiction to much of modern portfolio theory. The efficacy of both technical and fundamental analysis is disputed by the efficient-market hypothesis, which states that stock market prices are essentially unpredictable
- Market Valuation of the Patent – Market valuation of a patent is the price at which an asset would trade in a competitive auction setting. Market value is often used interchangeably with open market value, fair value or fair market value, although these terms have distinct definitions in different standards, and may or may not differ in some circumstances.
- In-demand structure of the Patent – In-demand structure shows a market trend in terms of sale, purchase profit and loss incurred in a considered market through commercialization of competitors products.
Disclaimer – The valuation of patent is calculated on approximation basis and cannot be used for any legal representation as it is only an opinion. ANS IP Management Services cannot be held responsible for any commercial or legal usage of this report.
For Detailed Report, please contact us at firstname.lastname@example.org.