Just how can industry value a patent or maybe a patent application? Rapid truth is it "depends". The treatment depends on several factors for example what type of industry your invention falls into (ie: a totally new drug patent will most likely be valued within the different manner compared to a new software patent). However, there are lots of fundamental valuation techniques which are used across all industries. Two most frequent are: Believed future earnings (also called discounted earnings or "DCF") Market comparables or "market comps" Let us begin with the earnings approach or DCF becasue it's type of harder. This valuation approach attempts to estimate the amount earnings your patent will generate over its existence (usually 2 decades). There are many items that enter th
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