Intellectual property rights are viewed as being of increasing importance in many fields. In firms, R&D and innovation via patents (or trade marks) can increase firm productivity as well as labor and capital services. Most IPRs are subject to at least decisions regarding licensing and sale. However, patents subject to particularly wide range of decisions both whilst they are being applied for and following grant. Patents thus involve both a high degree of flexibility in how they are managed and also a high degree of uncertainty as eventual value. As to a firm, making decision about patents during the application process, on renewal and for licensing, purchase and sale negotiations needs assessing the value of patents. At each stage of the application procedure the potential future benefits of continuing the application have to be balanced against the cost proceeding to the next stage. However, the cost can vary considerably in practice and the distribution of them over the various stages of the application procedure can vary too. Needless to say professional fees can considerably add to the initial official cost of applications and these also need to be taken in to account. On the revenue side there are, extra profits and licensing revenue due to holding a patent be available over the life of the patent. Current practice in patent valuations are reviewed as is relevant literature gathered from number of fields including accounting methods, discounted cash flow (DCF), related decision tree analysis (DTA) methods, and econometric methods based on renewal data. This paper tries to analysis the process of firm's decisions about patents from the point of the valuation of patents. Then a series of methods must be introduced and developed based on the cost/benefit analysis. This abstract is a start, and a lot of work must to be done in the future research, which involves challenge and chances.
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