There are various uncertainties which are related to the assessment of the value of patents. The uncertainty plays a vital role in developing the potential value of a patent. When deciding on the potential value of a patent, it calculates the uncertainties surrounding the particular patent.
A valuation analyst at Patent Rebel can review the different characteristics relating to a patent. Afterwards, they can make an argument of different types of factors, whether positive or negative, which affect the value of the patent. The analyst can after that reveal the different kinds of factors whether it is negative or positive which affects the end value of the patent.
Types of Patents and Related Patent Term.
The patents can be organized into different types depending on the kind of country with the Patent Site. There are various categories of patents in a Patent Site which are determined by the kind of country.
Utility patents happen to be the most common type of patents with several ratings falling under it. The utility patents often protect the functional aspect of the invention and spell how the design works.
The validity of the utility patents is usually 20 years given that the maintenance costs are paid on a recurring period. The utility patents usually vary on the type of state which spells its expiry period.
Design patents are another type of patents which involves the artistic side of innovative to machinery designs. The validity of the design patents usually last for 14 years.
Plant patents usually cater to inventors who either reinvented a new type of plant of invented a new type of plant. 20 years is often the tagged expiry period associated with the plant patent.
Calculating the Value of a Patent.
With the surrounding uncertainties and complications associated with patents, you can always find the value of a patent. There are different factors which help in determining the value of a patent.
For most patent holders intent on profiting from their patents, they end up receiving the value they negotiate for rather than what the patent deserves.
The years remaining on a patent dictates the value of the patent. Most of the investors prefer a patent with many years of guaranteed patent protection. Patents which are still new in the market also fetch low investors in terms of litigation.
The number of investors listed on a patent determine the value of a patent. The value of a patent can be determined with the number of inventors. The higher the number of investors fetches a higher value compared to a patent with a low count of patent investor’s listed.
With various inventors listed under a patent, there is potential for a weakness to occur. There is also a litigation risk when an inventor is not included in the list.
The anticipated licensing revenue is another valuation means. The method of valuing patents is associated with evaluating the present net worth of royalties included in the licensing of patents.
A quality law firm can play a vital role in raising the potential value of a patent.