Valuation of patent technology

Technical valuation / Patent valuation

Technical valuation

“Technology valuation means using the generally acknowledged valuation principles and the methodologies of the technology market to assess the economic value created by technology through commercialization.”

「Act on the Transfer of Technology and Promotion of Commercialization」 Article 2

Through technology valuation

Translate the value of technology and I.P into their monetary value.

TransferㆍTransactions
  • Technology trading
  • Licensing pricing
Finance
  • Establish security to the of the technology
  • Investment attraction
In-kind contribution
  • In-kind contribution of technical or I.P rights
Strategy
  • Increase value & commercialize technology
  • Spin-off
  • Long-term management planning strategy
Clearing
  • Asset valuation due to corporate bankruptcy or restructuring
  • Establishing a debt repayment plan
Litigation
  • I.P infringement
  • Defaults
  • I.P related litigations
Taxation
  • Tax reducing plan or recovery for cost on R&D
  • Tax payment
Others
  • Exclusive technology listing

Patent evaluation

Evaluation Index
Patents are evaluated on the basis of the categorized evaluation indexes of rights, technicality, and usability. Each main evaluation category is subdivided into 2~3 subclass indexes for segmentation and provides evaluated scores.
Evaluation Index
Main category Subclass category Points
Right(40) Range of the rights 20
Faithfulness of the rights 20
Patent stability -20
Technicality(20) Adherence to technology trends 5
Technology lifetime 10
Authenticity & leading nature of the technology 5
Usability(40) Possibility of commercialization 20
Possibility to exercise the rights 20
Field of Activity
Classification
Patent evaluations are generated using evaluation models and are graded according to classification criteria. The rating is divided into 9 grades from the highest AAA to C, the lowest grade. The evaluation level is based on the relative evaluation of the five WIPO technical categories, a rating is assigned based on the stanine 9 rating system used in state-authorized tests.

※ WIPO 5 technology classification: The technical classification established by the World I.P Organization (WIPO) that classifies technologies into 5 major categories; (Electrical / Electronics / IT, machines, Physics / Materials, Chemical, Biotechnology).

Rating criteria

Rating criteria
Rate AAA AA A BBB BB B CCC CC C
Percentage
(%)
4% 7% 12% 17% 20% 17% 12% 7% 4%
Cumulative
rate(%)
4% 11% 23% 40% 60% 77% 89% 96% 100%

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