Patent Valuation

Adam Mossoff

Professor of Law, George Mason University

Senior Scholar,

Center for the Protection of Intellectual Property http://cpip.gmu.edu/

Twitter: @AdamMossoff

Today’s Patent War

Source: PC Magazine/Verizon, 2012

Why myopic focus on litigation?

Patents are Commercial Assets

Complexities of Patent Valuation

Ø  Technological Innovation §  Market: prediction ex ante of market effect

§  Legal: how define new innovation in legal document

Complexities of Patent Valuation

Ø  Commercial Innovation §  Market: new tech innovation leads to new commercial

innovation

§  Legal: new commercial arrangements – patent pools, collateralization of patents, patent agents, etc., etc.

Complexities of Patent Valuation Ø  Litigation as Backstop

§  Common Law Legal Systems Rely on Courts for Dispute Resolution

§  Remedies Affect Behavior of Market Actors:

§  Injunctions

§  Damages: Lost Profits or Reasonable Royalty

Patents are Commercial Assets