Valuation methods that leverage typical drafting and prosecution tasks reduce the cost of valuing IP Portfolio.

Claims are the primary factor affecting a patent’s value. The scope, validity, and specific technology covered by the claims determine everything from who should be sued and what royalties can be expected from a license, to the difficulty of designing around or introducing a competitive feature. Valuation based on claim analysis is resource intensive when it is conducted after the fact; however, when claim information is collected during the acquisition timeline, patent value can be assessed with minimal additional work. 

Once the claims have been assessed, the discount rate is calculated by applying the Corporate Asset Pricing Model. Patent valuation during the acquisition timeline should be used in the Real-Option analysis discussed above for properly allocating resources during IP Portfolio development but also in the proper management and monetization of an IP Portfolio.