If you are an inventor, you might have been increasingly asking yourself how much your invention would cost. Unfortunately, the idea itself brings money very rarely, but if you have a patent for a technical decision, you can roughly predetermine the related fee.
A patent is a document issued by the Russian Federal Service for Intellectual Property (hereinafter the Rospatent) certifying the priority, authorship and exclusive right to an invention, utility model or design invention.
By definition, the patent is a document certifying the rights of a patent holder to a specific decision. In other words, a patent only provides information about a technical decision and not the decision itself. A patent is an intangible asset and, as it is, a decision can only be revealed once it is implemented.
How are the patent related fees determined and what factors do affect them? The value of the rights to an invention or other subject matter protected by a patent is entirely determined by the economic benefits that the rights holder may receive from the introduction and use of his or her innovations in business or other areas. These benefits may have the form of creating new goods or giving new properties to old goods, reducing the cost of producing goods or services, expanding markets and solving any other important tasks.
Patent valuation has its own specificity, which is that the applicability of comparative and cost assessment approaches to such objects is very limited.
A comparative valuation approach based on comparing an object of valuation with its market analogues is very rarely used for valuation of intellectual property, since an invention or a utility model are always unique objects and comparing them with their analogues will always be incorrect, since it ignores the uniqueness of the decision. In addition, the information itself on patent sales transactions is almost always closed or difficult to access.
When it comes to the application of cost approach methods, it is also struggling. That means the cost calculation methods based on the analysis of the cost of creation of the object of assessment, since the cost of the patent may be quite weakly related to the costs of its development and there are many examples when commercially successful developments are made with a very modest budget.
The most common approach to patent valuation is the income approach, and it is its methods that reliably determine the market value of a patent. These methods make it possible to calculate the value of the subject matter being valued based on an analysis of the potential income that the rights holder may receive from the use of the invention. In other words, the methods of the income approach link the value of the patent being valued with the commercial efficiency of the patent being valued.
It should be understood that the cost of a patent may be affected by different factors, for example:
The factors presented above do not compose a complete list. In reality, the experts take into account not only the features of the patent and market, but some other global or local trends as well.
For the purpose of a complete and balanced valuation, complex methods are usually used, which contain elements of different approaches. A stable set of such methods of calculation has even got its name in the special literature, which is the combined approach.
In order to assess the value of a patent for an invention or utility model, specialists may need all kinds of documents and information, as follows.
Thus, it is rather difficult to determine the cost of a technical decision protected by a patent. Such complexity is related both to the specifics of the object which is not a tangible asset and a large number of subtleties and nuances in the evaluation. Let us also remember that the request of the patent owner will also have a significant impact on the value of this intellectual property.