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Technology Valuation

Valuation is an essential first step in the process of bringing a new technology to market. The basic question is: How much is an invention or patent worth?

This is a relatively straightforward question when the invention is a product that is already on the market. In that case, one would simply have to look at sales figures to determine the value of the technology.

However, most new technologies are not yet commercialized, and are months, if not years, away from a salable product or service.

The valuation of an important invention that is not yet a product is both science and art….and often requires a bit of “crystal ball” vision.

Adding to the complexity of technology valuation, inventions often result in several different types of products or services, sometimes in different markets and industries. In some cases, a newly patented technology is incorporated into devices, processes or software which also incorporates other patented technologies.

To determine the economic value of an invention an individual needs:

  • An in-depth knowledge of patent strategy
  • An understanding of patent coverage scope and probabilities
  • A thoughtful appreciation for product development strategy and intellectual property agreements
  • Knowledge of the market applications
  • A detailed understanding of the invention’s competitive performance advantages (and disadvantages).

Valuation requires qualitative and quantitative information AND selection of the most appropriate valuation model – and there are several to choose from.

But, beyond qualitative and quantitative factors, valuation of an invention and its surrounding suite of intellectual property (IP) and bioproperty assets, requires well-seasoned expertise in selecting the most appropriate valuation methods (using more than one is typical) from several different approaches including:

  • Marketplace comparisons
  • Replacement cost
  • Income projection
  • Value envelope capture

Once appropriate valuation methods are selected for the invention, the technology’s performance characteristics must be thoroughly defined, analyzed and quantified. The property control position is then assessed and market characteristics and statistics are analyzed and organized. Calculations using the selected models can now begin.

Valuation is much more than executing mathematical formulae and known quantities.

The most important factor that determines a proper valuation is beyond mathematics – it is the professional judgment of risks and probabilities.

The correct determination of these risks and probabilities is essential for valuation of new technology and its supporting patents and other forms of IP and bioproperty. There are very few professionals who have the experience and expertise required to conduct such comprehensive and sophisticated valuations, particularly when they include bioproperty assets.

BPSG’s 30 years of intellectual property consulting and experience with all facets of new technology commercialization provides us with unique capabilities in many sophisticated forms of technology valuation.

Valuation Of Single Patents

Our valuations have included single patents covering many types of inventions:

  • Bioproperty assets in the life-science industry and plant breeding programs
  • Suites of patents comprising a technology platform
  • Complex intellectual property (IP) and bioproperty portfolios

Valuation of Technology Assets

BPSG has performed valuations on many technology assets including:

  • Individual components of genetic constructs of genetically engineered crop plants
  • Methods of instruction issuance in microprocessors
  • Breeding lines and pedigrees for wheat
  • Molecular markers for beef cattle performance
  • Recombinant bacteria for bioplastics production
  • Method for enhanced fruit juice extraction
  • Method and apparatus of supercritical fluid CO2 extrusion
  • Molecular elicitors of systemic plant disease resistance
  • Microbial control of plant disease; unique genetics for tuber crops as a biofuel

BPSG approaches each technology valuation with a combination of thorough understanding of the technology, quality research, quantitative rigor, deep understanding of intellectual and bioproperty rights, an appreciation for markets, business forces, and market dynamics, and the professional judgment and creative decision-making derived from over 30 years of professional practice.

While some of the technology valuations conducted by BPSG are relatively long-term and reasonably expensive endeavors, we also conduct much shorter and less expensive valuations.

We understand that the scope and extent of a valuation depends on the specific goals and needs of each client. Performing a technology valuation for a patent owner in the middle of a patent infringement lawsuit is a different matter from making a technology acquisition valuation, which is also different from a valuation for a company that desires to pursue its own in-house research and development effort.

BPSG is equally capable of conducting each type of new technology valuations.