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Patent Valuation

Soquel Group performs financial valuations of patent portfolios and individual patents. The objective of a patent valuation is to assess the economic value of a portfolio or patent, typically for purposes of sales or licensing.

For purposes of licensing, a valuation helps determines a reasonable starting point for licensing discussions between a patent holder and a prospective licensee.  For purposes of sale, a valuation establishes an offering price or, in the case of the sale of a company, it establishes the value of a company’s intellectual property independent of its products and services.

When valuing patent assets, Soquel Group performs a bottom-up estimate of potential royalties, i.e. revenue, and adjusts this estimate to take into account a variety of factors, including:

  • Intrinsic strength of the patent
  • Patent history, including prosecution, litigation and licensing
  • Recent patent licensing and sales
  • Risks, both in terms of patent prosecution and litigation

Although there is no standard approach to patent valuation, Soquel Group has developed and typically uses a six step methodology that has been tested and validated. We customize the approach as necessary for the patent or portfolio being valued and tailor the scope of the project to fit a client’s needs and budget.