Consequence Metrics vs. Time Period of Measurement The “Consequence Metrics vs.Time Period of the Measurement“ figure shows consequence- based metrics segmented by timing. It was developed by a subcommittee of the IRI’s Research-on-Research committee in the early 1990s and provides a good set of measures for incremental R&D activities aimed primarily at a [...]
As R&D executives cope with tight financial resources and demands for increasing new revenues, the pressure to measure their organizations increases. Metrics allow R&D leaders to optimize R&D’s productivity and justify to the CFO and CEO their returns on continued funding. There are actually rich sources of appropriate R&D metrics for leaders to [...]
Four overall measures of the technical robustness of a technical community are: 1. Affiliation rate, 2. Author rate, 3. Source rate, and 4. Longevity. These four measures are determined by looking at a field of technical research as defined by keywords, concepts, or patent classifications. Once the field of art is defined, the [...]
Number of Patents Versus the Value of Each Patent Valuation methods, both relative and financial, create a continuum of values. When one plots the “Number of Patents Versus the Value of Each Patent” one gets a lognormal distribution as shown in the figure. As mentioned in previous chapters, for most unmanaged portfolios, 1% [...]
It is been said that beauty is in the eyes of the beholder. The same is true for patent value. Value is in the eyes of the beholder or business user. Thus context is critical for valuing intellectual property assets. For example would you buy a bottle of water for hundred dollars? If [...]
Valuation of Software IP A unique class of asset that is subject to intellectual property protection is software. The central constructs for software valuation are the identification of the software inventory components, possession by the corporation, and statements of ownership to the components. These are the primary constructs to keep in mind for [...]
The above three general methods for valuing patents are aimed at putting a financial or dollar value on each. Once doing so the relative value of those patents can then be determined by simple rank ordering of these financial values. Given the complexity of the above analyses it is oftentimes more useful for [...]
Accuracy Versus Cost of Valuing Patents Each of the three major methods for valuing patents has their own strengths and weaknesses. In the “Accuracy Versus Cost of Valuing Patents” figure the trade-off between the two can be seen. Although the X scale for time may be accurate for organizations with lots of valuation [...]
PATENT AUCTIONS Another form of market-based valuation is to use comparable values derived from patent auctions. These became popular in the early 2000s, but the large public auctions have fallen into disuse because although there were plenty of patents offered, there were not many bids. CAPITAL MARKET VALUE Yet another form of market [...]
COMMODITY ROYALTY RATE APPROACH This approach is easiest to apply when one gets lucky enough to have the technology and/or product under consideration already being licensed or sold to others at known rates. Utilizing such comparable royalty rates is a standard practice in the industry. Using such royalty rates is typical for a [...]
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