Non-linear corrections in market method of patent valuation

Katarzyna Kopczewska () and Mateusz Kopyt

Business and Economic Horizons (BEH), 2014, vol. 10, issue 3, 177-190

Abstract: Intellectual property rights are increasingly becoming an important asset of enterprises, so that an innovative business must carefully decide about the method of its valuation. The existing literature indicates three classical approaches to this issue: cost-based, income-based, and market-based methods, and a few more sophisticated ones such as: the option-based and patent citation methods, with their advantages and disadvantages. This paper proposes a novel methodology of non-linear corrections in the market model of patent valuation, when factors such as time to expiration, copying risk, or momentum in patent life cycle are taken into consideration. The proposed approach, based on evidence of the non-linear impact over time of the abovementioned factors on the value of patent, is anchored primarily in marketing science as well as in the theory and practice of accounting. This fine-tuning raises the accuracy and credibility of the market method of patent valuation.

Keywords: Patent valuation; market method; non-linear linking functions (search for similar items in EconPapers)
JEL-codes: G32 M4 O32 O34 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

Downloads: (external link)
https://academicpublishingplatforms.com/downloads/ ... aluation_177-190.pdf (application/pdf)
http://academicpublishingplatforms.com/article.php ... mber=15&article=2008 (text/html)

Related works:
Journal Article: Non-Linear corrections in market method of patent valuation (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pdc:jrnbeh:v:10:y:2014:i:3:p:177-190

Access Statistics for this article

Business and Economic Horizons (BEH) is currently edited by Orifjan Namozov, Ph.D.

More articles in Business and Economic Horizons (BEH) from Prague Development Center Contact information at EDIRC.
Bibliographic data for series maintained by Jaroslav Holecek ( this e-mail address is bad, please contact ).