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Technology Valuation

An essential facet of new technology commercialization is valuation. The basic question is: "How much is an invention or patent worth?"

This is a relatively straightforward question when the invention is a product that is sold. Sales figures provide the most certain means of determining the value of technology.

However, most new technologies are not yet commercialized and are months, if not years, away from a salable product or service. To add to the complexity, inventions often result in several different types of products or services, sometimes in different markets and industries.

Valuation of an important invention that is not yet a product is both science and art, which is often mixed with a bit of “crystal ball” vision. The determination of the economic value of an invention requires:

  • An in-depth knowledge of patent strategy
  • An understanding of patent coverage scope and probabilities
  • Knowledge of the market applications
  • A detailed understanding of the invention’s competitive performance advantages (and disadvantages)

The Science of Technology Valuation

Technology Valuation requires qualitative and quantitative information AND selection of the most appropriate valuation models – and there are several to choose from.

But, beyond qualitative and quantitative factors, valuation of an invention and its surrounding suite of IP and bioproperty, requires seasoned expertise to select the most appropriate valuation methods (using more than one is typical) from several different approaches including: market comparisons, replacement cost, income projection, and "value envelope capture."

Once appropriate valuation methods are selected for the invention, the technology’s performance characteristics are thoroughly defined, analyzed and quantified. Together with a property control position assessment, market characteristics and statistics are analyzed and organized. Then valuation calculations using the selected model(s) can begin.

The Art of Technology Valuation

Valuation is much more than just executing mathematical formulae. The most important factor in conducting a proper valuation lies beyond pure marketing and mathematics – this critical factor is an experienced, professional judgement of risks and probabilities.

Determination of these risks and probabilities is essential for the valuation of new technology and their supporting patents and other forms of IP and bioproperty.

Few professionals have the experience and expertise required to conduct such comprehensive and sophisticated valuations, particularly when they include bioproperty assets. BPSG has unique capabilities in this sophisticated form of valuation. Our valuations have included:

  • Single patents covering various inventions
  • Bioproperty assets in plant breeding programs
  • Suites of patents comprising a technology platform
  • Complex IP and bioproperty portfolios