There are various uncertainties which are related to the assessment of the value of patents. It is with the uncertainty that it can be utilized in arguing the potential value of a patent.
Under the review of a financial analyst from Patent Rebel, the various characteristics of a patent can be disclosed.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.
Different Types of Patents and How Long Does a Patent Last?
The patents can be divided into different categories depending on the country with the Patent Site.
An utility patent is the most common type of patents with various classifications under it. Under the utility patent, it protects the particular functional aspect of the invention and how it functions.
The utility patent has a validity of 20 years handed that the maintenance cost is catered for regularly. Each country has its expiry period when it comes to the different categories of utility patents.
Another kind of patent is the design patent which caters for the aesthetic edge of creative to machinery inventions. 14 years is often the tagged expiry period associated with the design patents.
Plant patent is another type of patent which is obtained by inventors who either brought the existence of the plant or has to reproduce a new kind of plant. The related expiry period of the design patent for an inventor is usually 20 years.
What Makes a Patent Valuable?
With the surrounding uncertainties and complications associated with patents, you can always find the value of a patent. Different factors are calculated when evaluating the patent value.
A typical process experienced by different patent holders when selling their patents is receiving value negotiated rather than the value earned by the technology.
The cost of a patent is showcased by the years remaining on the particular patent.Many investors steer away from patents with limited years of patent protection. Most investors also avoid patents which have been recently issued for 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. A litigation risk can occur when there is a failure in listing an inventor as part of the patent.
The anticipated licensing revenue is another valuation means. The patent valuation process is determined with the current value of royalties as part of the patent licensing.
The value of a patent can be identified with the quality of the related law firm.