Patent value calculator is a free patent valuation or market valuation tool for a patent filed anywhere in the world. The patent value calculator provides a quick idea of a value of patent if a company is intending to acquire license or buy the patent and implement the patent into the market. Patent value determined through below calculator follows a novel formula developed by ANS IP Management Services through rigorous analysis of performance of the product in different domains, geographical regions and patent licenses/sale happened in past. The demand value of the patent can be anywhere between 10-30% of the calculated patent valuation.
Calculate Value of your Patent for Free
Please fill below form to estimate the value of your patent.
* For Detailed Report at affordable cost, please contact us at info@ansipms.com or through contact form.
The patent value 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 estimating Patent Value through the above given calculator are:
- The above patent value calculation is activated by entering the patent application no. The applicant should enter only one patent application no.;
- Enter the legal status of the patent application 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 value calculator displays an approximately calculated patent value which may prove to be a close estimation if the patent value is estimated by a professional team also. The approximate number can be justified by conducting an in-depth and detailed patent valuation through an experienced patent valuation professional. 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 acceptable range.
General Methods of Patent Valuation
The experts adopt several methodologies for estimating a patent value which can be broadly grouped in four methods:
- Cost-based approach for a patent value estimation – The cost based approach 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 approach for a patent value estimation – 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 approach for a patent value estimation – The income based approach is based on the principle that the value of an asset is intrinsic to the expected income flows it generates.
- Option-based approach for a patent value estimation – 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 (USD 2000) – ₹ 2,50,000 (USD 5000).
Additional Requirements for Patent Value Calculation
Further to the value estimated by the patent value calculator, 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 tools are used for estimating technical value of the patent. Although, 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 value 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.
Why Use Our Patent Value Calculator?
Patent valuation is generally done (and also recommended) by the a team patent valuation experts, patent analysts and attorneys. Hence, the patent valuation includes huge manpower and man-hour which indulges huge cost that may become unbearable by inventors or even corporate clients.
So, to give a fair idea of their patent values before completing a deal the patent value calculator is provided. It is always recommended that after confirmation of commercialization agreement and also if the concerning or buying party is asking for a detailed, the client should procure detailed patent valuation report.
What are the other options to ANS IP MS Patent Value Calculator?
There are not many patent value calculators in market. Although, www.unclaw.com offers a patent value calculator and is a good one also. The inventor and corporate clients should bear in mind that if they have to proceed legally on the basis of any report then they should approach a patent valuation expert after taking suggestive figures from the online patent value calculators such as ours.
What are the drawbacks of not conducting patent valuation?
Many commercialization deals require rigorous documentation and one of which is patent valuation report. Let’s take a scenario that the inventor or the applicant has not sought the patent valuation report, then two outcome may be foreseen:
a) Deal finalized with undervaluation of the patent – The amount paid by the buyer many be much lower than the actual value of the patent or the patented product in the market. This becomes issue of dispute when the same products starts generating much higher revenue as anticipated by the inventor.
b) Deal finalized with overvaluation of the patent – Sometimes it may happen that on the basis of media reports, current market trends and a brilliant patent pitch by the inventor, the buyer agrees to pay a value which later proves to be unworthy. So, the patent valuation becomes very important because the current trends do not always reflect the stiff competition the patent may face in the market and how the similar patents have performed previously.
Hence, it is always suggested to contact a patent valuation expert for generating the patent valuation report to gain a fair value idea OR at least visit our patent value calculator and get a quick idea of the fair value for a patent.