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The Maximum Achievable Profit Method Of Patent Valuation

Author

Listed:
  • NORMAN CARTE

    (MacPherson Kwok Chen & Heid LLP, 2402 Michelson Drive, Suite 210 Irvine, California, USA)

Abstract

The maximum achievable profit method of patent valuation mitigates problems associated with the contemporary discounted cash flows method. According to this new method, the maximum incremental profit that commercialization of a patent can achieve under ideal circumstances is determined. The present value of this profit is the highest valuation that the patent can receive. All of the factors that are known to affect the value of a patent are graded to provide a score. A transfer function uses the score, the present value of the maximum achievable incremental profit, and an investment amount to determine a valuation.

Suggested Citation

  • Norman Carte, 2005. "The Maximum Achievable Profit Method Of Patent Valuation," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 2(02), pages 135-151.
    • Handle: RePEc:wsi:ijitmx:v:02:y:2005:i:02:n:s0219877005000435
    DOI: 10.1142/S0219877005000435
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    Citations

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    Cited by:

    1. Ulrich Lichtenthaler, 2017. "Shared Value Innovation: Linking Competitiveness and Societal Goals in the Context of Digital Transformation," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 14(04), pages 1-14, August.
    2. Mohd Shadab Danish & Pritam Ranjan & Ruchi Sharma, 2022. "Assessing the Impact of Patent Attributes on the Value of Discrete and Complex Innovations," Papers 2208.07222, arXiv.org.
    3. Gustavo Da Cruz & Danilo Moreira Jabur & Franklin Mendonça Goês Junior, 2017. "How Much Am I Selling It for? Approaches and Methods of Patents Valuation in Technology Transfer," International Business Research, Canadian Center of Science and Education, vol. 10(4), pages 69-76, April.
    4. Ulrich Lichtenthaler, 2016. "Manage Your Company’s Innovation Interdependencies," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 13(06), pages 1-12, December.
    5. Mohd Shadab Danish & Pritam Ranjan & Ruchi Sharma, 2021. "Identification of “Valuable” Technologies via Patent Statistics in India: An Analysis Based on Renewal Information," BASE University Working Papers 13/2021, BASE University, Bengaluru, India.
    6. Mahmood, Tarique & Mubarik, Muhammad Shujaat, 2020. "Balancing innovation and exploitation in the fourth industrial revolution: Role of intellectual capital and technology absorptive capacity," Technological Forecasting and Social Change, Elsevier, vol. 160(C).

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