Income Valuation The income-based

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This includes research and development (R&D) costs, legal fees, and other related expenses. While this method provides a baseline value, it does not necessarily indicate the future commercial potential of the patent burundi b2b leads Market Based Valuation The market-based approach compares the patent to similar patents that have been sold or licensed. This method works well in real estate, where comparisons are common. In the patent world, however, a similar patent may exhibit invalidity, which would limit the applicability of this approach. It is most useful for valuing large portfolios rather than individual patents. method uses a discounted cash flow (DCF) model to estimate the future earnings of the patent.


This approach considers what the owner intends to do with the patent, such as product development, licensing, or litigation. It is the most commonly used method because it accounts for business suitability and technology relevance. IP Valuation Methods Determining the Value of a Patent Factors That Influence the Value of a Patent Many critical factors affect the value of a patent, including originality, potential for infringement, and the presence of prior art. A patent with high originality that avoids infringement and has little prior art is of considerable value. This value is not fixed and can change based on market conditions and technological advances.