Introduction

Impalpable assets and patents are getting important day by day for the accomplishment of the companies. Necessary focus and attention of the business leaders is required to obtain and maintain the valuable patent assets. This article describes strategies and tactics that facilitate the successful development, administration, and licensing of patent portfolios over time. It is critical to separate high-value patents from those that might not provide as large returns when thinking about licensing or selling a patent portfolio. High-value patents might be the key to making money through licensing deals or sales to investors, other companies, or patent aggregators. Identifying these patents requires a comprehensive approach that involves assessing both technical and business factors. Here's a step-by-step guide to help identify high-value patents in a portfolio for licensing or sale.

Examine the claims and scope of the patent

To identify the high value patents, the first step is to carefully identify evaluate the scope and claims of each patent. The patent with broad claim covering the key technologies is more valuable than the patent with the narrow claim. Patents that cover basic technologies, extensive features, or indispensable components of a good or service in a sector are classically worth more.

1. Broadness of claim:

   A patent having a claim which covers probable uses or having a market with diverse use are considered more appreciated patent as it can be applied to wide range of companies, industries or products.

2. Reliance on the Patent:

   If multiple technologies or companies are targeted by the patent than the patent is considered to be more valuable. Those patents which are the part of the building block of some technology are highly pursued afterwards.

Evaluate Relevance and Market Demand

The value of the patent is dependent on the market demand of the technology which it is protecting. A patent which covers a problem which is demanding for the growth of the market and crucial than it have high value./p>

1. Current Industry Significance:

   Evaluation of the need of the patented technology for the industries facing evolution or commotion, e.g. healthcare, AI, cleans energy etc.

2. New Developments:

   Patents which are related to the technologies which are emerging such as block chain, quantum computing, or electric vehicle are considered high value for the future.

3. A competitive edge:

   Patents that protect the companies from the competitors by providing competitive advantage to the business are considered high value.

Analyze Litigation History and Patent Citations

If a patent is involved in the litigation then it is considered as the high value patent. If a patent is referred in the research paper or cited in a patent then it can be of great significance in the targeted field.

1. Litigation History:

   If a patent has endured litigation or been a subject for the licensing agreement then it directs good relevance and strength in the market and if the patent have involved in the successful litigation, where it has a favourable settlement, may be valuable.

2. Patent citation:

   Numerous citations indicate that a patent is regarded as foundational in its field. Therefore, having extraordinary value as it is reflected as valuable for the patent communal.

Examine the Potential for Commercialization of the Patent

A patent is considered high value patent if it can be commendably commercialized in the market. The patents which have high value are tied to services or products which are easily monetized for sale, licensing, strategic partnership, or manufacturing.

1. Possibility of Licensing:

   A patent which can be licensed to multiple corporates and parties have a high chances of generation of the revenue. One need to consider that there are multiple players in the technology who can get benefit by using the technology of the patent.

2. Production or Use of the Product:

   The value of the patent may rise if it directly relates to a product or marketable solution that is in high demand. The chances of a successful commercialization are significantly higher for patents pertaining to products that are still in the development or production stages.

Analyze the legal status and strength

The legal status and the strength can affect the value of the patent. The patents which are difficult to enforce and legal issues are less expected to generate any revenue.

1. Maintenance of Patents:

   Need to keep the check if the patent has been maintained (i.e. the maintenance fees has been paid on time) and is in force. Patents which are abandoned or expired are not considered as valuable up till they are part of any strategic pool of IP.

2. Validity and patentability:

   A patent which is robust in its validity and patentability have high value. The patent with multiple office actions, severe examinations (e.g. opposition proceedings or re-examination) and endured the challenges are incline to be sturdier.

3. Freedom to Operate (FTO):

   A patent which faces significant risk of FTO may be of less value. One should ensure that their patent does not infringe on other patents which are existing.

Examine the Competitive Environment

To determine the value of the patent it is important to understand its competitive landscape. The patents providing help to eliminate the competition in key areas and provide the strategic advantage over the competitors are of high value.

1. Competition and Patent Thickets:

   A patent may be more valuable if it prevents a competitor from entering a market or protects a technology or feature. Furthermore, patents are valued highly since they can give the business a monopoly on a crucial technology.

2. Distinguishing Technology:

   A patent covering a technology that is unique or hard to copy can act as a significant deterrent for rivals, increasing its marketability for licensing or sale.

Seek Out Synergies in Your Patent Portfolio

Patents have more value if they are part of a large portfolio. To identify the patents having high value, it requires understanding the synergies between patents of the portfolio.

1. Patent Families:

   If a patent family is covering core technology in diverse jurisdictions or has different claims, then it may be of higher value than the individual patents. The patents which complement each other are likely to have more value and create a more complete solution.

2. Possible Cross-Licensing:

   If a patent in the portfolio can be a part of cross-licensing with other companies or patent holders, then it can increase the overall price of the portfolio by increasing its potential for licensing.

Take Market Reach and Geographic Coverage into Account

The value of the patent is also dependent on the geographic scope of a patent. A patent that is granted in multiple countries having growing or large economies, or granted in multiple key markets around the globe, is likely to have more value than the one limited to only one country.

1. Global Defence:

   A patent that is granted in multiple regions or countries (e.g., the U.S., Europe, Japan, and China) is likely to be more valuable as it allows buyers or licensors to protect their product globally.

2. The Size and Potential of the Market:

   A patent having coverage of a technology that is relevant to growing or large markets has more potential for commercial partnership or licensing deals.

Case Studies on Acquisition

Google and IBM: In 2011, Google acquired IBM's patent US6718365B1. This patent was cited as prior art during the prosecution of several Google patents, including US7412708B1, US8645391B1, and US8825471B2. Following the acquisition, Google withdrew its own patent application EP2076853A1.

Patent Acquisition Trends

Companies are increasingly acquiring patents to strengthen their market position and protect their innovations. For example, large IT companies like Apple and Microsoft acquired Nortel's patent portfolio for $4.5 billion in 2011. Corporations are deliberately acquiring patents to expand their global presence. For instance, U.S.-based corporations are acquiring patents from countries like China and Japan to strengthen their international operations.

Patent Licensing Trends

The global patent licensing market is expected to grow from $2.407 billion in 2024 to $4.381 billion by 2032, with a compound annual growth rate (CAGR) of approximately 7.77% during the forecast period.

Patent Portfolio Building for Licensing and Sales

In the rapidly evolving field of licensing and sales, companies aiming to secure a competitive edge must strategically build robust patent portfolios. This proactive approach not only safeguards intellectual property but also establishes a foundation for innovation leadership. Various patent-related services, including patent portfolio categorization, HML (infringement search), IOU chart, claim chart/EOU, brokerage report, and patent valuation, play pivotal roles in this process.

1. PATENT PORTFOLIO CATEGORIZATION:

   The categorization segregates a large patent portfolio into smaller technology-driven groups/buckets. Each patent in a bucket is then further marked as GREEN, YELLOW, and RED, indicating the likelihood of potential infringement. The categorization is based on factors such as the broadness of independent claims, claim complexity, technology scope, forward citation analysis, claim length, etc.

2. HML (INFRINGEMENT SEARCH):

   A patent is analyzed to identify potential infringers in the target jurisdiction. The search results are ranked as High, Medium, and Low (HML) on the basis of infringement overlap between the subject patented claims and identified potential targets/companies.

3. IOU CHART:

   The IoU Chart (Indication of Use) provides a preliminary overview or indication of potential infringement. It offers a broad-level comparison between the subject's patented claim and the identified potential targets/companies. It highlights the subject's patented claim elements that are directly infringing, as well as any potential differences with the identified potential targets/companies.

4. CLAIM CHART/EOU:

   The claim chart/EoU report shows the technology overlapping on the basis of claims and identified product information. Explicit presentation of public information for a clear and precise depiction of evidence of infringement is critical to making informed decisions. While preparing the claim chart, every claim element is explicitly mapped onto an alleged piece of relevant information.

5. BROKERAGE REPORT:

   The report is a comprehensive report which includes the detailed information of patented technology like potential of use, potential of target market, scope of technology, etc. This report helps to identify the potential buyers and show the benefits of the invention. It may be prepared for a single patent or a pool of patents. It is helpful for services like the sale and acquisition of patents, licensing, litigation, cross-licensing, and patent product launch, etc.

6. PATENT VALUATION:

   Patent valuation is a very important step for selling the patent. The value of the patent is based on multiple factors such as the scope of technology, life of technology, validity of the patent, cost factor, etc. In our valuation report, we consider more than 25 parameters and calculate the justified value of the patent/patent pool.