Discover the true worth of a company’s most valuable asset
Introducing patent value
Introducing patent value
Cipher contributed an article to IAM on 3 August 2022, around valuing patents when they are not part of any transaction but ‘In situ’.
How to calculate what patents contribute to enterprise value
It is easy to assert that patents are valuable and much harder to quantify that value. This has typically been explained by reference to the unique and unusual characteristics of patents.
To deal with this reality, many valuation methodologies have been developed. Among the most common are the cost, income and market approaches.
The Contribution of Patents to Enterprise Value
Patent Value report
In this report, the authors consider:
- The importance of patents
- Existing approaches to patent valuation
- ‘In situ’ valuation of patents
- An opportunity to communicate patent value
““In situ valuation focuses on the impact on cash flow of owning a patent portfolio. This impact can be positive such as revenue or such as royalties under a licence.”
Nigel Swycher (CEO) and Steve Harris (CTO), Cipher
We are planning a round table discussion on the solution put forward by our paper. Details will be announced shortly.
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It’s never been more important to understand and communicate the value your patents contribute to the health of your organisation. As budgets are restricted, IP teams must be vigilant not to cut too deep or in the wrong place.
Nigel Swycher, CEO and Founder of Cipher
Return on Investment (ROI)
$40 billion is spent on patents each year, but how do you determine the value those assets are bringing to your organisation?
The data, the tools and the model for calculating ROI are ready to be used. Cipher’s report – Pulling Back the Curtain: Calculating Return on Investment of Patent Portfolios – was co-authored with senior figures at Meta.
Related patent value content
ARM on classifiers and managing patent budgets
Rob Calico, VP Litigation and IP, discusses the challenges of managing a sophisticated portfolio in a fast-moving technology environment, and how Cipher has helped them manage their patenting strategy and budgets.
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BlackBerry Patent Sale Announced
Using the Cipher Universal Technology Taxonomy we have identified the top areas of technology innovation protected by the BlackBerry portfolio.
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The End Of Accounting
Episode 9, Season 1 of Cipher Vision Podcast series is about The End of Accounting. It features Dr Baruch Lev, the guru of intangible assets.
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Return on Investment of Patent Portfolios
$40bn is spent on patents each year, but how do you determine the value those assets are bringing to your organisation? The data, the tools and the model for calculating ROI are ready to be used. Perhaps it’s time to pull back the curtain.
Read more
With Cipher you can also…
Optimise your portfolio
Ensure you have the right portfolio to meet your strategic patenting objectives.
Model cross licensing
Combine patent and revenue data to determine rational licensing outcomes.
Manage your Budget
Justify patent budgets to CFOs and others to communicate the impact of your investment.
Conduct due diligence
Automate manual reviews for efficient execution of M&A and licensing transactions.
Tackle inbound patent assertion
Be prepared with evidence to create a fast and effective threat assessment.
Benchmark your portfolio
Assess your portfolio in comparison to other owners through your own technology lens.
Monetise your portfolio
Identify opportunities to create value through licensing or sale of patent assets.
Predict Technology Trends
Track new technologies of today and discover the unknown owners of future disruptive innovation.