Method of calculating the market value of individual patents within a patent landscape

A method of estimating the market value of individual patents within a patent landscape, comprising the steps of:

• assigning a score S to each patent within a patent landscape, representing in arbitrary units its weight relative to its patent landscape;
• identifying those patents within said patent landscape with a known market estimate, and assigning, said market estimate to said those patents;
• assigning each patent within said patent landscape to zero or more categories based upon the likelihood that said patents with similar scores S share similar market values V;
• summing within each category the market values V of those patents for which a market value has been assigned;
• summing, within each category the scores S of those patents for which a market value has been calculated;
• calculating a ratio value R for each said category, by dividing each category's said sum of market values V by each category's said sum of scores S;
• calculating a set of category-specific market values VC for each and every patent assigned to one or more categories, by multiplying each said patent's score S by each said category's ratio value R, and adding each result to each said patent's set of category-specific market values VC;
• and,
• calculating a revised market value VR for each and every patent assigned to one or more categories, by averaging the member values contained within each set of category-specific market values VC.

A method of estimating the market value of individual patents within a patent landscape, comprising the steps of:

• assigning, a score S to each patent in a patent landscape, representing in arbitrary units its weight relative to its patent landscape;
• identifying those patents belonging to a portfolio within said patent landscape for which a portfolio revenue value A has been ascertained, and assigning said revenue values A to said portfolios;
• summing the patent scores S within one or more portfolios, producing a portfolio score PS for each portfolio;
• calculating a revenue value DRV for each patent belonging to portfolios which have been assigned revenue values A, by multiplying each, said patent's score S by its portfolio revenue value A, and dividing by its portfolio score PS;
• assigning a royalty rate Y to each portfolio which has been assigned a revenue value A;
• calculating a royalty revenue factor RRF for each patent belonging to a portfolio which has been, assigned a royalty rate Y, by multiplying, each said patent's revenue value DRV by its portfolio royalty rate Y, and dividing by the sum of the scores S of the patents directly cited by each said patent;
• calculating an associated royalty revenue estimate RR for each direct citation from patents belonging to a portfolio which has been assigned a royalty rate Y, by multiplying the cited patent's score S by the citing patent's royalty revenue factor RRF;
• and
• summing the individual royalty revenue estimates RR associated with the direct citations to a given patent, producing a total royalty revenue estimate TRR for each said patent.