THE MAXIMUM ACHIEVABLE PROFIT METHOD OF PATENT VALUATION

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

International Journal of Innovation and Technology Management (IJITM), 2005, vol. 02, issue 02, 135-151

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.

Keywords: Patent valuation; intellectual property valuation; intangible asset valuation; business valuation; maximum achievable profit (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (6)

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DOI: 10.1142/S0219877005000435

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