Intellectual Property for R&D

How are patents valued?

Description

IP can make up a large percentage of an organisation’s intangible assets but how much is your IP worth to your company? In this course we join Duncan Clark, Head of PatSnap Academy and other guest speakers with expertise in this area. The course explores how patents can be valued using a number of different methodologies and how the output from these analyses can be used for negotiations, licensing, raising funding or measuring R&D performance. This is an advanced level course which follows on from ‘How to successfully commercialize IP’ and takes about 1 hour 20 minutes to complete.

Duration
This unit has 0 Minutes of videos.

Unit Progress

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Modules
  1. Why should patents be valued?
  2. What methods are used for valuing patents?
  3. How to use valuation for buying, selling or cross-licensing patents
  4. How to use valuation for seeking funding
  5. How to use patent valuation for benchmarking and risk assessment
  6. Use valuation to maximise ROI on IP
  7. Quiz

Modules


Module 1

Why should patents be valued?

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Intangible assets now account for the largest proportion of a company’s value and intellectual property forms a huge part of the intangible asset class. Meanwhile, shareholders and other stakeholders have been becoming more and more aware of the growing impact of intangible assets on a company’s overall value. In this module, we investigate when the valuation of patents becomes especially important and what can be done with it.

Additional Resources
Do it in PatSnap: What does "Market Valued Patents" show me?
Module 2

What methods are used for valuing patents?

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In this module, we consider how the main approaches to patent valuation work. If you’ve already viewed our units on patent valuation in our unit ‘How to successfully commercialize IP,’ then you might want to skip to Module 3. If, however, you want a summarized refresher, or if this is new for you, then this module makes for an ideal start. We join subject expert in this field, Dr Dirk Oliver Kiehne, who explores when the standard methodologies can and cannot be used, depending on the business question in hand. Dr Kiehne considers the drawbacks of each approach and explains what alternatives can be used to overcome the pitfalls of these methodologies.

Additional Resources
The buyer and seller's guide to patent valuation
Module 3

How to use valuation for buying, selling or cross-licensing patents

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In this module, we consider the need to reach a fair assessment of the valuation of patents when two or more parties have an interest in gaining an understanding of an outside opinion in order to negotiate effectively in transactions, such as buying or selling patents and cross-licensing. There’s also an introduction to transfer pricing, used when companies sell goods within the company but to parts of the company in other international jurisdictions. In this case, a fair valuation is vital for tax reasons.

Additional Resources
Licensing adds value to your Intellectual property
How Does PatSnap Valuation Work?
Module 4

How to use valuation for seeking funding

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Reaching an accurate assessment on patent valuation is a big topic, especially for investors conducting due diligence on start-up organizations. However, it is also important that a start-up understands how intellectual property adds value to their organization, especially when they are pitching their business for future investment. For this section, we join Jon Calvert of ClearView IP for his view on how the start-up should view IP, before joining Dr Kiehne who will take us through a real-life example of carrying out this analysis in practice, and what to consider.

Additional Resources
Startup advice: Creating an effective IP strategy
Module 5

How to use patent valuation for benchmarking and risk assessment

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In this module, we turn our attention to how patent valuation can be used to inform strategic business units within the organization. This module contains four examples of the application of patent value analysis. Dr Kiehne walks us through how it can be applied to benchmarking corporate strategy, conducting risk assessments (such as missing diversification), measuring the effects of R&D efforts and managing IP as an asset

Additional Resources
Using IP data for Market Intelligence & Investment Research
Module 6

Use valuation to maximise ROI on IP

Duration: 0 Minutes

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In this module, we explore five examples of applying patent valuation theory to patent searches and innovation data in order to answer specific business questions that consider ways of ‘finding the money,’ or maximising return on investment (ROI): How could we improve our IP portfolio? What are the highest value patents in the portfolio? Which technology markets will yield highest ROI? How do I compare against my competition (e.g. in terms of efficiency)? What would a merger or acquisition look like?

Additional Resources
Do it in PatSnap: How Do I Use The Patent Value Playbook?
Test Your Knowledge

When you are ready to complete this unit, take the quiz to see what you remember.

Take the Quiz

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