Patent valuation: improving decision making through analysis

A practical resource for valuing patents that is accessible to the complete spectrum of decision makers in the patent processIn today's economy, patents tend to be the most important of the intellectual property (IP) assets. It is often the ability to create, manage, defend, and extract value from patents thatcan distinguish competitive success and significant wealth creation from competitive failure and economic waste. Patent Valuation enhances the utility and value of patents by providing IP managers, IP creators, attorneys, and government officials with a useable resource that allows them to use actual or implied valuations when making patent-related decisions.Involves a combination of techniques for describing patent valuationIncludes descriptions of various topics, illustrative cases, step-by-step valuation techniques, user-friendly procedures and checklists, and examplesServes as a useable resource that allows IP managers to use actual or implied valuations when making patent-related decisionsOne of the most fundamental premises of the book is that these valuation skills can be made accessible to each of the various decision makers in the patent process. Patent Valuation involves narrative descriptions of the various topics, illustrative cases, step-by-step valuation techniques, user-friendly procedures and checklists, and an abundance of examples to demonstrate the more complex concepts. INDICE: PrefaceAcknowledgmentsPart One Foundations for Patent Valuation and Decision MakingChapter One Valuation BasicsWHAT IS “VALUE”?THE VALUATIONPROCESSIDENTIFYING THE SUBJECT MATTER OF THE VALUATIONInvention Use, Patent Rights or Both?Decoupling the Value of the Invention Use from the Value of the Patent RightsVALUATION MISCONCEPTIONSMisconception 1: Valuation analysis can only be conducted by experts.Misconception 2: The output from the valuation analysis—the value result—is more important than the valuation process.Misconception 3: The more quantitative and mathematical the approach, the more accurate the value result.Misconception 4: A valuation analysis must generate a precise result to be beneficial.Misconception 5: There is a “magic bullet” method for determining the value of a patent.THE THREE BASIC VALUATION METHODOLOGIESIncome MethodsMarket MethodsCost MethodsInterrelationship of the Three Basic MethodsLIMITATIONS ON RATIONALITY IN VALUATION AND DECISION-MAKING EXERCISESReferencesNotesChapter Two Patent BasicsWHAT IS A PATENT?Types of PatentsRights Granted by Patents—The Right to ExcludeSubject Matter of PatentsProcedureto Obtain a PatentInventorsBars to PatentsANATOMY OF A PATENTSpecificationDrawingsClaimsCRITERIA FOR A PATENTUtilityNoveltyNonobviousnessTRANSFERRING PATENT RIGHTSAssignmentsLicensesDeciding whether to License or AssignPayment Methods for Patent-Right TransfersNATIONALITY OF A PATENTParis TreatyPatent Cooperation TreatyReferencesNotesChapter Three Using Valuation Analysis to Improve Patent Decision MakingPATENT DECISIONSCreative DecisionsFunding DecisionsLegal DecisionsPatent Management DecisionsGovernment DecisionsMAXIMIZING, OPTIMIZING AND SATISFICING: HOW MUCH TO INVEST IN VALUATION ANALYSISPRELIMINARY PORTFOLIO VALUATION (PPV) AUDIT—A PRACTICAL VALUATION TECHNIQUEOverviewMechanics of a PPV AuditReferencesNotesChapter FourDisassemblyDISASSEMBLY AND DECISION TREESDecision Tree Components and ConventionsConstructing a Decision TreeUSING DISASSEMBLY TO DEVELOP HIGHER-QUALITY DATACommon Information ProblemsDisassembly can help to reduce the Information ProblemsUsing Disassembly to Generate Forecasts and Estimate Discount RatesSample Disassembly Exercise to Develop SeeminglyIncalculable DataUSING DISASSEMBLY TO UNDERSTAND DATA BETTERReferencesNotesPart Two Patent Valuation TechniquesChapter Five Preparing for the ValuationUNDERSTANDING THE BUNDLE OF LEGAL RIGHTSOWNERSHIP INTEREST IN THE PATENTDoes the “Owner” Possess a Valid Interest in the Patent?Is the Patent Still in Force?What Type of Patent Ownership does the Holder Have?Joint OwnersDESCRIPTION OFTHE PATENT RIGHTSENCUMBRANCES ON THE PATENTS RIGHTSLiensRestrictions on the Right to ExcludeUNDERSTANDING THE PATENT RIGHTS' NEIGHBORHOODBlocking PatentsSynergistic Patent RightsEXPLOITING THE PATENT RIGHTSDirect Economic BenefitsIndirect Economic BenefitsCommon Theme Links each of the Various RationalesReferencesNotesChapter Six Income Methods—Discounted Future Economic Benefits AnalysisBASIC ARITHMETIC OF THE DISCOUNTED FUTURE ECONOMIC BENEFIT (DFEB) ANALYSISThe Basic FormulaFocus is on "Net" Economic BenefitsTerminal ValueGARBAGE IN, GARBAGE OUT—THE CHALLENGES FOR A DFEB ANALYSIS LAY IN THE INPUTS NOT THE MATHPROJECTING FUTURE NET ECONOMIC BENEFITS—OVERVIEWIdentifying Sources of Economic BenefitsForecasting the Future Economic BenefitsDEVELOPING PROJECTIONS FROM ANALYTICAL ANALYSESDecision-Tree AnalysisDealing with Information Loss—Conducting Sensitivity Analyses on the Decision Tree AnalysisESTIMATING THE DISCOUNT RATEThe Five Components of the Discount RateDiscount Rates for Early-Stage TechnologiesA Few Mechanical ConsiderationsReferencesNotesChapter Seven Advanced Income Methods—Incorporating the Value of Future Decision OpportunitiesOPTION CONTRACTS AND THEIR VALUEWhat is an Option Contract?Generating Value from an Option ContractBlack-Scholes Options Pricing ModelREAL OPTIONSOverviewValuing Real Options with Financial Option Contract MethodsVALUING PATENTS USINGOPTION-PRICING INSIGHTSPatents and Real OptionsTrying to Adapt Black-Scholes to PatentsUSING DECISION TREES TO INCORPORATE THE VALUE OF A PATENT'S FUTURE DECISION OPPORTUNITIESMonte Carlo TechniqueUse of Markov Chains in Patent ValuationAdjusting Input Estimates Over Time—Incorporating New InformationReferencesNotesChapter Eight Market MethodsMARKETS AND PATENT RIGHTSInformation ProblemsComparability ProblemsLack of Convenient Exchange Institutions and the Needfor IntermediariesCOMPETITIVE EXCHANGEAuctionsLess Formal Methods of Competitive ExchangePros and Cons of Valuing Patent Rights through Competitive ExchangeCOMPARABLE TRANSACTIONSRatio AnalysisALTERNATIVES TO THE CORE MARKET METHODSShadow PricingSurrogate Valuation MeasuresStated Preference AlternativesReferencesNotesChapter Nine Cost MethodsA FEW ACCOUNTING PRINCIPLESThe Cost Principleof AccountingRecording the Initial Cost of a PatentDepreciation and AmortizationCOST OF DEVELOPMENT—QUESTIONABLE VALUATION TOOLThe Basic ArithmeticCritiques and Justifications for the Cost of Development MethodLoss Aversion BiasCOST OF REASONABLE ALTERNATIVES—ESTABLISHING A MAXIMUM PRICEThe Basic ArithmeticSome Challenges in Conducting a Cost of Reasonable Alternatives AnalysisPractical Suggestions for using the Cost of Reasonable Alternatives MethodReferencesNotesPart Three Patent Valuation in PracticeChapter Ten Pricing Patent LicensesPAYMENT STRUCTURESLump Sum FeesRoyaltiesEquity StakesA Few Select Licensing ScenariosDETERMINING THE PRICE FOR A LICENSE—IN GENERALFuture Economic BenefitsThe Pricing ZoneValuation Methods for a Patent LicenseLESS FORMAL VALUATIONTECHNIQUES FOR SETTING ROYALTY RATESRules of Thumb—The 25% RuleIndustry Royalty RatesEconomic Benefit AnalysisReferencesNotesChapter Eleven Patent Infringement DamagesBASIC U.S. LEGAL FRAMEWORK FOR CALCULATING DAMAGES IN PATENT INFRINGMENT CASESLOST PROFITSWhat are Lost Profits?Panduit Test and its RelaxationCalculating Lost ProfitsREASONABLE ROYALTYHistorical BackgroundIncreased Popularity of the Reasonable Royalty MethodReasonable Royalty Method Calculates Compensatory Damages, but from a Different Perspective than Lost Profits MethodThe Hypothetical Negotiation and the Georgia Pacific FactorsAnalytical ApproachRules of ThumbApportionmentExpanding Reasonable Royalty DamagesADDITIONAL PATENT DAMAGES MATTERSAppealing a Patent Damages AwardPrejudgment InterestEnhancedDamagesAttorney FeesANSWERING THE “SUE OR SETTLE” QUESTIONPatent Holdingsv. Apollo HypotheticalThe Importance of Putting on the other Person's ShoesReferencesNotesChapter Twelve Unlocking the “Potential” Value within PatentsINSTITUTIONS MUST EVOVLE TO KEEP PACE WITH ECONOMIC CHANGESPATENTS AS COLLATERAL FOR SECURED LOANSOwnership Concern: Who Owns the Patent?Valuation Concern: What is the Patent Worth?SECURITIZING PATENTSAsset Securitization in GeneralEmergence of IP Asset SecuritizationExamples of IP and Patent Securitization DealsThe Future of Patent Securitization DealsReferencesNotesChapter Thirteen Valuation in Patent-Based Tax Planning StrategiesEXAMPLES OF PATENT-BASED TAX-REDUCTION STRATEGIESMerck’s Tax-Reduction Strategy for its Zocor and Mevacor PatentsIP-Based Tax-Reduction Strategies are not SlowingTRANSFER PRICINGHow Transfer-Pricing Structures can Lower TaxesArranging a Patent-Based Transfer-Pricing StructureEarly History of IP-Based Transfer-Pricing StructuresDETERMININGTRANSFER PRICES FOR PATENT RIGHTSTransfer Pricing Rules and Regulations—Section 482 OverviewPurpose of Section 482The Arm’s Length Standard and ComparabilityBest Method RulePricing Intangible Assets under Section 482Advance Pricing AgreementsReferencesNotesAbout the AuthorsIndex

• ISBN: 978-1-118-02734-9
• Editorial: John Wiley & Sons
• Encuadernacion: Cartoné
• Páginas: 384
• Fecha Publicación: 09/05/2012
• Nº Volúmenes: 1
• Idioma: Inglés