Patent Evaluation

Although numerous valuation methodologies exist for the purposes of determining what a patent portfolio is worth, TPL’s approach is to first look at the current or prospective use of the claimed technology, the revenue associated with those products using the claimed technology, the risks related to enforcement, and the current market for similar patent assets. By providing realistic patent evaluations and formal valuations, TPL provides executives with key data that can be incorporated into their financial planning and accounting.

Patent Technology Adoption

The first step TPL takes in valuing a patent is determining whether the claimed technology exists in the marketplace. If the claimed technology is not currently used, we then predict the likelihood that the marketplace will move into the claims. Is the patent holder itself producing products covered by the claims, and if so, what are the revenues associated with those products? Are competitors incorporating the claimed technologies? If the claimed technology is a specialized product or process not yet adopted by the industry, will the industry eventually adopt the technology and what additional investments may be required to make the claimed technology useful to the industry? Who will make those investments? By obtaining answers to these questions TPL helps its clients determine if a patent holds current or future value.

Patent Financial Modeling

TPL utilizes various patent financial models to predict a patent’s worth. These models include basic determinations of risk versus reward for litigation involving high-value assets, cost based models, modeling of future value and potential income streams, and discounted cash flow models. TPL’s models are all created in the context of the potential use of the claimed technology, rather than in a speculative vacuum that ignores the actual evolution of the particular technical field.

Patent Valuation

When the need arises to have a formal valuation of a patent portfolio for tax or accounting purposes, TPL can work with your accounting and legal teams to determine a fair market value for a set of patent assets. Such valuations are performed strictly within the appropriate tax and accounting guidelines, and are based on thorough analysis of the claims and the marketplace. TPL’s methodology will provide you with robust valuations with appropriate evidentiary support.