Saturday, August 23, 2014

Valuation of Patent

Feasibility -- whether patent holder's offer to buy-out patent or continue to pay Royalty over life of patent.

The Relief from royalty method (Income Approach) is used to arrive at value at which patent can be bought.

The Relief from royalty method is based on premises, what amount of cost would the company save if it owns the patent.

Detail case study with computation - Refer Link below