Value Matrix

In order to fine tune the analysis to arrive at a specific reasonable comparable royalty rate, a value matrix is constructed as shown in the “Value Matrix” figure. Patents describing products very close to the patent under evaluation are pairwise placed on the matrix (shown as yellow dots). Once the pairwise placement is completed and the graphic points moved so that there are equal numbers of points above / below and left / right of the center lines, the patent under consideration can be evaluated by overlaying the “range correction contour lines”. The +/-100% contour lines correspond to the ranges derived from the Value Grid. Thus a fine tuned estimate of the royalty rate is obtained for the patent under consideration.