Introducing patent value

Discover the true worth of a company’s most valuable asset

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’.


Cipher CEO and paper co-author Nigel Swycher explains the thinking behind ‘In situ’ valuation.

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

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 Portfolioswas co-authored with senior figures at Meta.

Access our Pulling Back the Curtain report

Return on Investment of Patent Portfolios

With Cipher you can also…

Portfolio Optimisation connecting cogs

Optimise your portfolio

Ensure you have the right portfolio to meet your strategic patenting objectives.

Read more
Cross Licensing

Model cross licensing

Combine patent and revenue data to determine rational licensing outcomes.

Read more
patents budget management

Manage your Budget

Justify patent budgets to CFOs and others to communicate the impact of your investment.

Read more

Conduct due diligence

Automate manual reviews for efficient execution of M&A and licensing transactions.

Read more

Tackle inbound patent assertion

Be prepared with evidence to create a fast and effective threat assessment.

Read more

Benchmark your portfolio

Assess your portfolio in comparison to other owners through your own technology lens.

Read more

Monetise your portfolio

Identify opportunities to create value through licensing or sale of patent assets.

Read more
Technology Trends icon

Predict Technology Trends

Track new technologies of today and discover the unknown owners of future disruptive innovation.

Read more

Improve your patent strategy now

Speak to our team today.

Arrange a callback