This is where the idea of a patent comes in wherein the “patent is an exclusive right that is given to the inventors to protect their creations of mind i.e. innovation”.
As a significant need for intellectual property, a patent also enables inventors to earn monetary benefits by trading the exclusive rights that are associated with the patent. However just the fact that an idea is original doesn’t necessarily make it a worthwhile intellectual property. Sometimes it may be worth nothing at all or worth much more than it is being credited for.
Patent Valuation tends to calculate the real market value of the patent. For the practice of trading patents to take place, the real value of the intellectual property is required. There isn’t any legal framework defining the laws related to patent valuation as well, different institutions use their own methods to determine the market value of the patent.
A key method of valuing the patent is to obtain a value of the invention in question and make sure that it results in a suitable return for the inventor. As patents are intangible, sometimes it becomes difficult to attach a monetary value to them. One of the key factors entailing patent valuation is finding the correct parameters by which to determine the best market value of the patent.