A variety of methods can be used to calculate the amount of a company's patent assets. The following are some common calculation methods:
Cost method: Determine the value of a patent based on its investment cost. This includes the costs of developing, filing, maintaining and protecting patents. The disadvantage of the cost approach is that it does not take into account the market value and commercial potential of the patent.
Market method: Determine the value of a patent based on market demand and supply relationships. This includes considering factors such as the transaction price of the patent in the market, the competitive environment, and demand forecasts. Disadvantages of the market approach are that comparable market data are required to make the assessment, and market conditions may change.
Profit method: Determine the value of the patent based on its expected revenue. This includes consideration of the patent's commercial potential, projected future revenue, cost savings and other factors. The income approach typically uses a discounted cash flow model to calculate the present value of a patent.
Expert evaluation method: Ask a professional intangible asset appraiser or patent appraiser to conduct an evaluation and determine the value of the patent based on their professional knowledge and experience. They will consider multiple factors, including the degree of technological innovation of the patent, market demand, competition, etc.
It should be noted that each method has its advantages, disadvantages and applicable conditions. The most accurate assessment of the amount of patent assets may require a combination of methods, adjusted for specific circumstances and relevant market data. In addition, it is recommended to seek the help of a professional appraiser or a professional consulting agency to ensure the accuracy and compliance of the appraisal. For related questions, please click here to ask a question or consult Zhenglian Kunjiang’s third-party assessment.