Patent value considerations

Written By Manjola Prenga

Patent market characteristics

  • Illiquid; lack of transparency when it comes to pricing

  • Most companies do not conduct any monetary valuation and if yes, it is rather cost oriented

  • The uncertainty in valuation methods leads not only to a loose patent management but also to insufficient utilization of potential values in patents

Patent markets are increasingly becoming more sophisticated due to the following drivers:

  • Shareholder activism on traded firms => IP divesture as a mean of shareholder value creation, ex. Blackberry, Motorola

  • Liquidation cases => EV = IP Value (Kodak, Nortel)

  • Asia as a region driving IP investment => Chinese companies such as Huawei are leaders in IP filing

  • Perseverance of future success => Litigation cases as a way to preserve market share

Manjola Prenga
Previous

Quo vadis, IP strategy?