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NISCAIR ONLINE PERIODICALS REPOSITORY (NOPR) >
NISCAIR PUBLICATIONS >
Research Journals >
Journal of Intellectual Property Rights (JIPR) >
JIPR Vol.16 [2011] >
JIPR Vol.16(5) [September 2011] >
| Title: | Enhancing Patent Valuation with the Pay-off Method |
| Authors: | Collan, Mikael
Heikkilä, Markku |
| Keywords: | Pay-off method
Patent valuation
Discounted cash flow method |
| Issue Date: | Sep-2011 |
| Publisher: | NISCAIR-CSIR, India |
| Abstract: | Numerical valuation of patents is a difficult task due to great uncertainty
regarding the future and inaccuracy in estimation. The pay-off method is an
easy to use and understand analysis method that is based on using value
scenarios and real options-thinking. The method is designed for the analysis of
assets that suffer from difficulties in estimation precision and often face
high uncertainty. This paper shows how patent valuation can be enhanced with
the help of the pay-off method, based on any of the three ‘conventional’ patent
valuation methods. A numerical case about how the pay-off method can be used
together with the discounted cash flow method is presented. The method is
already in use by a number of multi-national companies for valuation of R&D
and is on its way to be introduced into the IPR functions of a number of
corporations. |
| Page(s): | 377-384 |
| CC License: |  CC Attribution-Noncommercial-No Derivative Works 2.5 India |
| ISSN: | 0975-1076 (Online); 0971-7544 (Print) |
| Source: | JIPR Vol.16(5) [September 2011]
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