| Three approaches to patent valuation |
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1) Cost approach: what it would cost to replace the asset.
2) Market approach: determined by comparing with the market price aof similar asset.
3) Income approach: calculation of the future economic benefit of the asset. |
Patent practitioners are becoming more accustomed to having to deal with standards, especially in areas such as semiconductors, telecoms and software. But, if a recent International Standards Organization (ISO) proposal is taken up, they might have to learn about standards not just for the technology protected by patents but also how they value the patents themselves.