Patent Valuation From a Practical View Point, and Some Interesting Patent Value Statistics From the Patentvaluepredictor Model

Patents have known finite terms. Conventional methods using income theory to value a patent analyze micro economic data to determine the anticipated economic benefit of owning the patent. This micro economic data includes market data indicating the gross sales and net income derived from the sale of products attributable to the patent, and any revenue derived from licensing the patent. Applying income theory to micro economic data to value a patent is labor intensive, costly, and complex. A micro economic analysis can be used to prove damages in patent infringement litigation. Do you allocate all value to the first patent? Patents 1, 2 and 3 each cover the first product. Patents 1, 2, and 4 cover a second product. Patents 2 and 5 cover the third product. V. The PatentValuePredictor Theory for Valuing PatentsNow let me tell you about the PatentValuePredictor model for valuing patents. How does the PatentValuePredictor model work? The model generates a nominal annual sales covered by the patent based solely upon measurable properties of the patent document and the value of the Gross Domestic Product (GDP). Finally, as the size of an evaluated patent portfolio grows, the PatentValuePredictor model's portfolio valuation becomes statistically more accurate. That explains why the PatentValuePredictor model determines an average value of enforceable patents is only about $2.8 million. The chart below shows the currently ten most valuable patents and their technology area.TEN CURRENTLY MOST VALUABLE PATENTS (AS OF 3/11/2004)Patent Issued Current Value ($) Assignee Technology 6,517,866 2/11/2003 1,797,722,689 Pfizer Inc. Pharma/Bio 6,500,987 12/31/2002 1,570,968,527 Teva Pharmaceutical Industries Ltd. Pharma/Bio 6,566,344 5/20/2003 1,481,848,538 Idenix Pharmaceuticals, Inc. Pharma/Bio 6,465,496 10/15/2002 1,408,931,126 Teva Pharmaceutical Industries, Ltd. Pharma/Bio 6,452,054 9/17/2002 1,220,308,695 Teva Pharmaceutical Industries, Ltd. Pharma/Bio 6,221,640 4/24/2001 1,194,927,644 Cubist Pharmaceuticals, Inc. Pharma/Bio 6,071,970 6/6/2000 1,107,999,343 NPS Pharmaceuticals, Inc. Pharma/Bio 6,319,919 11/20/2001 1,081,784,355 Davis; Bonnie (Syosset, NY) Pharma/Bio 5,610,034 3/11/1997 1,071,288,767 Alko Group Ltd. Pharma/Bio 6,022,716 2/8/2000 1,069,310,287 Genset SA Pharma/Bio While the Pharma/Bio tech area has held the lead for most valuable patents, the relative value of the most valuable patents has been increasing for decades. Note in the sequence of three charts below the trend of the relative value to increase over the decades.TEN MOST VALUABLE PATENTS ISSUED IN 1983Patent Issued Relative Value When Issued Assignee Technology 4,399,282 8/16/1983 1,343 Kabushiki Kaisha Yakult Honsha Pharma/Bio 4,375,514 3/1/1983 1,256 Schering, Aktiengesellschaft Pharma/Bio 4,372,948 2/8/1983 974 Kureha Kagaku Kogyo Kabushiki Kaisha Pharma/Bio 4,374,829 2/22/1983 661 Merck ; Co., Inc. Pharma/Bio 4,396,617 8/2/1983 660 Duphar International B.V. Pharma/Bio 4,399,276 8/16/1983 605 Kabushiki Kaisha Yakult Honsha Pharma/Bio 4,369,189 1/18/1983 551 Union Carbide Corporation Pharma/Bio 4,410,537 10/18/1983 507 Burroughts Wellcome Co. Pharma/Bio 4,399,148 8/16/1983 499 Union Carbide Corporation Pharma/Bio 4,372,953 2/8/1983 490 Otsuka Pharmaceutical Company, Limited Pharma/Bio TEN MOST VALUABLE PATENTS ISSUED IN 1993Patent Issued Relative Value When Issued Assignee Technology 5,252,474 10/12/1993 1,696 Merck ; Co., Inc. Pharma/Bio 5,256,558 10/26/1993 969 The Trustees of Rockefeller University Pharma/Bio 5,258,502 11/2/1993 868 Massachusetts Institute of Technology Pharma/Bio 5,268,273 12/7/1993 824 Phillips Petroleum Company Pharma/Bio 5,182,263 1/26/1993 823 Hoffmann-La Roche Inc. Pharma/Bio 5,187,241 2/16/1993 763 International Business Machines Corporation Pharma/Bio 5,262,568 11/16/1993 756 State of Oregon Pharma/Bio 5,198,563 3/30/1993 695 Phillips Petroleum Company Chem/Polymer 5,227,405 7/13/1993 690 Duke University Pharma/Bio 5,196,524 3/23/1993 679 Eli Lilly and Company Pharma/Bio MOST VALUABLE PATENTS ISSUED IN 2003Patent Issued Relative Value When Issued Assignee Technology 6,517,866 2/11/2003 3,374 Pfizer Inc. Pharma/Bio 6,566,344 5/20/2003 2,646 Idenix Pharmaceuticals, Inc. Pharma/Bio 6,602,861 8/5/2003 1,252 Research Corporation Technologies, Inc. Pharma/Bio 6,531,282 3/11/2003 1,225 Oligotrail, LLC Pharma/Bio 6,605,606 8/12/2003 1,109 Miravant Pharmaceuticals, Inc. Pharma/Bio 6,665,641 12/16/2003 884 ScanSoft, Inc. Software 6,602,503 8/5/2003 861 Biogen, Inc. Pharma/Bio 6,596,332 7/22/2003 841 Nestec S.A. Foods products 6,602,499 8/5/2003 824 The General Hospital Corporation Pharma/Bio RE038073 4/8/2003 804 Research Corporations Technologies, Inc. Pharma/Bio VI. ConclusionConventional valuation models are not generally applicable to patents.

What Patent Lawyer Calgary Can Do For Your IP Application?

The patent was principally directed at LCD displays for laptops. The claimant brought proceedings against three defendants in the patent county court.

The claimant then sought to have one of the patent claims amended in order to meet part of the defendant's case for revocation. The claimant argued that their action would fail if the courts did not allow the proposed amendments. In the original patent, there was no mention on how the module would be attached. In the original patent, no mention of this feature having inventive significance had been made.

If the first analysis was correct, then the amendment would be deemed to add new inventive significance to the patent and would offend the rule on adding matter.

Intellectual Property Law - Patent Infringement - Patent Law - Amendments Disallowed

The review of the invention is important, so it can be properly explain to the approving office and a patent lawyer Calgary with technical background and even experience aside from its law degree can verify the invention to the existing database of the IP if there is an existing or similar invention.By the way, Patent lawyer must verify efficiently whether the invention is definitely original, as submitting an invention that is not new can become a problem later. Keep in mind that claims is a legal description that comes with the patent application. The claim is one that draws the line between your invention and others, so making sure that you have describes in details how someone could possibly copy the invention is the key to taking an infringement case to anyone who would dare copy your invention.; Given this fact, hiring a Patent lawyer Calgary can give your claims the best legal protection possible.

Patent filling in India

Your lawyer should be responsible for all the imminent hurdles at the patent office. All what you need is a patent or a copyright. The rest should be left to your lawyer. As a businessman, you should evaluate the whole process and see if it makes sense employing a lawyer to take you through the process. Keep in mind that both you and your lawyer have a common goal and this is seeing that you succeed in getting your trademark or patent.

How to Register a Trademark - Employing the Services of a Trademark Or Patent Lawyer

A patent agent or lawyer can help you with those issues before applying for an invention patent.Patent are one of the most valuable competitive and technological information source available today and most important is that, its freely and easy accessible through various patent databases. Patent bibliographic information provides lots of insights pertaining to the competitor's activity, market strategies, R;D focus and business strategies.The reason why you should carefully document your idea is the following - your Provisional Patent Application may be the only source of proof that you are the original inventor and entitled to reaping the benefits of the patent. It is very possible that since the time you have submitted your Provisional Patent Application, someone else filled out paperwork for regular patent.

Apart from online patent sites, there are several patent offices that manually search for patents.

How To Get A US Patent

Is It An Invention?

A patent is there to protect an 'invention', not simply an idea. If the answer is yes then your idea is not an invention, its simply the logical application of current day knowledge to a new problem and therefore you can't patent it.

In many ways the US patent system is more akin to what many people assume about patents over here, if your the first person come up with an idea then you can patent it. Patents cost money. Carrying out the searches and filing your patent application through an attorney will cost a few thousand pounds. Once you've got your patent you then have ongoing costs each year to patent offices to keep the patent active.

Another misconception is that once you have a patent no-one else can copy your idea. If the infringer is a large company, or several companies infringe your patent you need to be able to fund the legal action. Is the idea your looking to patent commercial enough to justify all this.

You may be looking to patent your invention to then license it to another company to produce.

A few patent help tips

When researching an invention you'll often need to read through existing patent applications to make sure your idea is new. The rest will simply be lesser claims the patent can fall back to should the higher claims ever be overturned or rejected by the patent examiner.

Patent claims are not exclusive.

Filing a patent application doesn't mean that any searching will be done. It will then be examined in detail by a patent examiner but even if the patent is awarded it can be overturned at any time if prior art can be proved. However even then bear in mind that searches are not necessarily as skilled as you may expect and patent office searches will not necessarily search anything other than previous published patent applications and filings.

There is no point giving the patent attorney too much information.

Should I Patent My Idea?

A U.S. patent is necessary to protect your rights if you have invented a unique product or come up with a new idea. A patent grants property rights to an inventor, and is issued by the U.S. Patent and Trademark Office. Venture Backed Companies ; Startups Patent, Trademark, ; Corporate Law

If you're wondering how to patent an idea, it's the same process as for an actual invention. A utility patent is usually the patent of choice because in most cases it offers the best protection. According to patent law, only the original inventor can file an application and receive a patent, but you can make use of a lawyer to prepare the application. Patent law also prohibits a person from filing an application based on an item someone else has invented.If you want more patent information before you file, it's prudent to do a lot of research and read through reliable sources.

Acquiring a Plant Patent

What Is A Patent?

Once a patent expires, the invention loses its protection.

The most common type of patent applied for and granted is the utility patent.

Recourse If A Patent Is Violated

You should speak with a patent lawyer before applying for a patent. Patent infringement as it relates to plant patents is not uncommon, as those who are aware of the value of a plant patent are also aware of the value of seeking out alternative methods of discovering new plants.The U.S. Patent Office generally prefers that plant patent applicants utilize a patent lawyer when trying to determine whether or not they have created or discovered a new plant variety or species. Patent lawyers have attempted to get the word out that there is something known as a plant patent. Of course, this begs the question, why would anyone create a plant if they are unaware that they can retain a patent lawyer and apply to the U.S. Patent Office for a plant patent?

A patent lawyer can help protect a patent applicant's right to protect their financial interests. A patent lawyer with experience is a much better choice than a patent lawyer without experience, obviously. A patent lawyer can explain the maintenance fees associated with receiving a patent, how long it takes before you can expect your patent to be granted, and how to go about protecting your patent rights. Patent infringement issues can then be handled quickly, and often without a great expense as any indication of patent infringement can be immediately delved into by your patent lawyer.

India Patent Law

The due diligence process must take into consideration the competitive patent landscape.

Are the patents paid up in the Patent Office?

Do at least some of the patent claims cover the seller's products?

In that transaction, my client, a large manufacturer, sought to expand its non-commodity product offerings by acquiring "CleanCo", a small manufacturer of a patented consumer product. My client found CleanCo to be a good target for acquisition because CleanCo's product met a strong consumer need and, at that time, commanded a premium price in the market.

Due diligence revealed that CleanCo had few assets: the small manufacturing plant, limited but growing sales and distribution and several patents covering the sole CleanCo product. CleanCo owned the patents and had kept the fees paid. CleanCo's patent attorney had done a good job on the patents: the CleanCo product was covered well by the patents and there were no obvious legal errors made in obtaining the patents. So, I gave the transaction the thumbs up from the patent perspective. When everything else looked positive, my client became the proud owner of CleanCo and its product.

Given the fact that more than $150 million was spent on the CleanCo acquisition, these marketing professionals not surprisingly believed that the competitive products must be infringing the CleanCo patents.

As a result of this increasing competition for the CleanCo product, price erosion began to occur.

In hindsight, the competition for the CleanCo product could have been anticipated during the M ; A due diligence process. The patent law and the entire are governed by the superintendence of General Controller of designs patients, trademark patent and by geographical indications.

Anyone can be granted patent for any of their invention whether it is a product or some process.

Patent Valuation From a Practical View Point, and Some Fascinating Patent Value Statistics From the Patentvaluepredictor Model

A patent is there to protect an 'invention', not simply an idea. In many ways the US patent system is more akin to what many people assume about patents over here, if your the first person come up with an idea then you can patent it. Patents cost money. Once you've got your patent you then have ongoing costs each year to patent offices to keep the patent active. Is the idea your looking to patent commercial enough to justify all this.

A few patent help tips

Patent claims are not exclusive.

Filing a patent application doesn't mean that any searching will be done. It will then be examined in detail by a patent examiner but even if the patent is awarded it can be overturned at any time if prior art can be proved.

There is no point giving the patent attorney too much information.

Should I Patent My Idea?

Can we apply any of these theories to value patents?III. Patents have known finite terms. Conventional methods using income theory to value a patent analyze micro economic data to determine the anticipated economic benefit of owning the patent. This micro economic data includes market data indicating the gross sales and net income derived from the sale of products attributable to the patent, and any revenue derived from licensing the patent. Applying income theory to micro economic data to value a patent is labor intensive, costly, and complex. A micro economic analysis can be used to prove damages in patent infringement litigation. As a result, you cannot simply evaluate the value of a patent once you know the financials relating to certain products that the patent covers. No one produces anything covered by the second through tenth patent. Do you allocate all value to the first patent? Surely the other nine patents have actual value to the company! Patents 1, 2 and 3 each cover the first product. Patents 1, 2, and 4 cover a second product. Patents 2 and 5 cover the third product. The model generates a nominal annual sales covered by the patent based solely upon measurable properties of the patent document and the value of the Gross Domestic Product (GDP). You can those details of the model in my earlier article entitled "A Macro-Economic Model Providing Patent Based Company Financial Indicators and Automated Patent Valuations " posted in the publications sections of both and Suffice it to say here that there is a heuristic relationship between measurable properties of patent documents and patent value. Finally, as the size of an evaluated patent portfolio grows, the PatentValuePredictor model's portfolio valuation becomes statistically more accurate. See for example the corporate patent portfolio value charts in my earlier article "A Macro-Economic Model Providing Patent Valuation and Patent Based Company Financial Indicators" posted in the publications sections of both and Finally, there are some other interesting statistics I would like to share with you that relate to valuation of patents. The chart below shows the currently ten most valuable patents and their technology area.TEN CURRENTLY MOST VALUABLE PATENTS (AS OF 3/11/2004)Patent Issued Current Value ($) Assignee Technology 6,517,866 2/11/2003 1,797,722,689 Pfizer Inc. Pharma/Bio 6,500,987 12/31/2002 1,570,968,527 Teva Pharmaceutical Industries Ltd. Pharma/Bio 6,566,344 5/20/2003 1,481,848,538 Idenix Pharmaceuticals, Inc. Pharma/Bio 6,465,496 10/15/2002 1,408,931,126 Teva Pharmaceutical Industries, Ltd. Pharma/Bio 6,452,054 9/17/2002 1,220,308,695 Teva Pharmaceutical Industries, Ltd. Pharma/Bio 6,221,640 4/24/2001 1,194,927,644 Cubist Pharmaceuticals, Inc. Pharma/Bio 6,071,970 6/6/2000 1,107,999,343 NPS Pharmaceuticals, Inc. Pharma/Bio 6,319,919 11/20/2001 1,081,784,355 Davis; Bonnie (Syosset, NY) Pharma/Bio 5,610,034 3/11/1997 1,071,288,767 Alko Group Ltd. Pharma/Bio 6,022,716 2/8/2000 1,069,310,287 Genset SA Pharma/Bio While the Pharma/Bio tech area has held the lead for most valuable patents, the relative value of the most valuable patents has been increasing for decades. Note in the sequence of three charts below the trend of the relative value to increase over the decades.TEN MOST VALUABLE PATENTS ISSUED IN 1983Patent Issued Relative Value When Issued Assignee Technology 4,399,282 8/16/1983 1,343 Kabushiki Kaisha Yakult Honsha Pharma/Bio 4,375,514 3/1/1983 1,256 Schering, Aktiengesellschaft Pharma/Bio 4,372,948 2/8/1983 974 Kureha Kagaku Kogyo Kabushiki Kaisha Pharma/Bio 4,374,829 2/22/1983 661 Merck ; Co., Inc. Pharma/Bio 4,396,617 8/2/1983 660 Duphar International B.V. Pharma/Bio 4,399,276 8/16/1983 605 Kabushiki Kaisha Yakult Honsha Pharma/Bio 4,369,189 1/18/1983 551 Union Carbide Corporation Pharma/Bio 4,410,537 10/18/1983 507 Burroughts Wellcome Co. Pharma/Bio 4,399,148 8/16/1983 499 Union Carbide Corporation Pharma/Bio 4,372,953 2/8/1983 490 Otsuka Pharmaceutical Company, Limited Pharma/Bio TEN MOST VALUABLE PATENTS ISSUED IN 1993Patent Issued Relative Value When Issued Assignee Technology 5,252,474 10/12/1993 1,696 Merck ; Co., Inc. Pharma/Bio 5,256,558 10/26/1993 969 The Trustees of Rockefeller University Pharma/Bio 5,258,502 11/2/1993 868 Massachusetts Institute of Technology Pharma/Bio 5,268,273 12/7/1993 824 Phillips Petroleum Company Pharma/Bio 5,182,263 1/26/1993 823 Hoffmann-La Roche Inc. Pharma/Bio 5,187,241 2/16/1993 763 International Business Machines Corporation Pharma/Bio 5,262,568 11/16/1993 756 State of Oregon Pharma/Bio 5,198,563 3/30/1993 695 Phillips Petroleum Company Chem/Polymer 5,227,405 7/13/1993 690 Duke University Pharma/Bio 5,196,524 3/23/1993 679 Eli Lilly and Company Pharma/Bio MOST VALUABLE PATENTS ISSUED IN 2003Patent Issued Relative Value When Issued Assignee Technology 6,517,866 2/11/2003 3,374 Pfizer Inc. Pharma/Bio 6,566,344 5/20/2003 2,646 Idenix Pharmaceuticals, Inc. Pharma/Bio 6,602,861 8/5/2003 1,252 Research Corporation Technologies, Inc. Pharma/Bio 6,531,282 3/11/2003 1,225 Oligotrail, LLC Pharma/Bio 6,605,606 8/12/2003 1,109 Miravant Pharmaceuticals, Inc. Pharma/Bio 6,665,641 12/16/2003 884 ScanSoft, Inc. Software 6,602,503 8/5/2003 861 Biogen, Inc. Pharma/Bio 6,596,332 7/22/2003 841 Nestec S.A. Foods products 6,602,499 8/5/2003 824 The General Hospital Corporation Pharma/Bio RE038073 4/8/2003 804 Research Corporations Technologies, Inc. Pharma/Bio VI. ConclusionConventional valuation models are not generally applicable to patents.

A Brief Overview on the Israeli Patent Practice

The due diligence process must take into consideration the competitive patent landscape.

Are the patents paid up in the Patent Office?

Does the seller really own the patents?

Do at least some of the patent claims cover the seller's products?

My client found CleanCo to be a good target for acquisition because CleanCo's product met a strong consumer need and, at that time, commanded a premium price in the market.

Due diligence revealed that CleanCo had few assets: the small manufacturing plant, limited but growing sales and distribution and several patents covering the sole CleanCo product. CleanCo owned the patents and had kept the fees paid. CleanCo's patent attorney had done a good job on the patents: the CleanCo product was covered well by the patents and there were no obvious legal errors made in obtaining the patents. So, I gave the transaction the thumbs up from the patent perspective.

The former application for patent was filed no more than 12 months from the latter;

An application for priority has been filed within two months from the filing date (of the Israeli application for patent);

A certified copy of the former application (specification and drawings) was provided to the Israeli Patent Authority within 12 months from the filing date;

In the case wherein the prior application is not drafted in an Israeli formal language, the Israeli Patent Authority may ask the applicant to provide a translation of the specification into an Israeli formal language (English being among such).The Israeli Patent Examination: The Israeli Patent Authority performs an examination to determine whether the application complies with the Israeli law and regulations. 3 Easy Steps To Patent ; Make Money Request a Free Inventor Kit Today!
Prosecution: The Israeli Patent Authority starts the examination process about four or five years after the filing date in Israel, depending on the field of the invention. Maintenance fees: An Israeli patent may be in effect 20 years from its filing date.

Before the end of the 18th year from the filing date: $1050.Alternatively, a patentee may pay $2250 in advance, for the entire 20 year period of the patent’s lifespan.A delay in paying maintenance fees may result in abandoning the patent.Patent attorneys: According to Israeli Patent Law, patent attorneys (as well as licensed practicing advocates) possess exclusive rights for wage brokering regarding patent prosecution, design and trademark registration, preparation of all documents for intellectual property authorities in Israel and abroad, and representation of applicants before the intellectual property authorities.Conventions: Israel is a member of most major international treaties on intellectual property rights, including:

Trade Related Aspects of Intellectual Property (TRIPS)

Paris Convention for the Protection of Industrial Property, Stockholm revision (1967).

Rome Convention (1961): International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations

Patent Cooperation Treaty, (PCT) (Washington 1970)

Strasbourg agreement Concerning the International Patent Classification (1971).

Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure (1977).

Universal Copyright Convention (1952).

Convention Establishing the World Intellectual Property Organization (1967).

Understanding Patent Rights

The due diligence process must take into consideration the competitive patent landscape.

Are the patents paid up in the Patent Office?

Do at least some of the patent claims cover the seller's products?

In that transaction, my client, a large manufacturer, sought to expand its non-commodity product offerings by acquiring "CleanCo", a small manufacturer of a patented consumer product. My client found CleanCo to be a good target for acquisition because CleanCo's product met a strong consumer need and, at that time, commanded a premium price in the market.

Due diligence revealed that CleanCo had few assets: the small manufacturing plant, limited but growing sales and distribution and several patents covering the sole CleanCo product. CleanCo owned the patents and had kept the fees paid. CleanCo's patent attorney had done a good job on the patents: the CleanCo product was covered well by the patents and there were no obvious legal errors made in obtaining the patents. So, I gave the transaction the thumbs up from the patent perspective. When everything else looked positive, my client became the proud owner of CleanCo and its product.

Given the fact that more than $150 million was spent on the CleanCo acquisition, these marketing professionals not surprisingly believed that the competitive products must be infringing the CleanCo patents. However, I found that each of these competitive products was a legitimate design-around of the patented CleanCo product.

As a result of this increasing competition for the CleanCo product, price erosion began to occur.

In hindsight, the competition for the CleanCo product could have been anticipated during the M ; A due diligence process. As the "chair' has improvement over the 'stool', the patent office granted a patent to Bartholomew for his invention.

The basic patent only has both positive and negative right, where as all improvement patent enables their owner to exclude others from practicing their patented products.