For patents, the greater the exclusivity the greater the value


Aside from demand, the key to the value of a patent is its exclusivity, and the extent or magnitude of exclusivity can be affected early on in the innovation process. Valuators should take a look at what transpired before a patent was granted as well as the characteristics of and transactions for an existing patent:

Before

Did continued research develop more refined and broader utility after the initial invention? If yes, at what stage in the process was the patent applied for? Were parts of the invention disclosed beforehand? Were there users of the patented technology before a patent was granted? Were invention ownership issues clearly and legally resolved?

After

Will a patent claim prevent a competitor from making, using, or selling a similar product that would have a similar result? How narrow are the patent claims? If it is a broad claim, are there prior, more narrowly constructed claims in the same space? Can the patent be designed around? In what jurisdictions does a patent hold? What licenses of the technology exist? (ktMINE segregates exclusive licenses in its database of nearly 11,000 non-redacted agreements with variable royalty rates.)


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