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StockPricePredictor.com, LLC has developed macro economic models for automatically valuing patents. We have compiled a corresponding patent and financial database that can fulfill these needs. Our macro economic models account for the relative strength and breadth of each patent's claims, the remaining term of the patent, the industry market size relevant to the patent, and the profit margin. Our automated patent valuations are provided almost instantaneously. We provide verification of the availability of the patent valuation prior to the completion of the purchase.
This paragraph provides a SIMPLIFIED explanation of how we value patents and companies. Patents are a right to exclude others from making, using, or selling a product or service covered by the claims of the patent. Patents are awarded by the Federal Government for new and useful products or services. A good deal of the Gross Domestic Product (GDP) of any industrialized country, particularly the US, is covered by claims in patents. Why? Because every company knows that it is important to get patents covering new products to prevent competition, thereby resulting in a large profit margin. We model this situation by assuming all GDP is covered by patents, and then estimating the fraction of the GDP covered by each patent using sophisticated data analysis and additional modeling based upon macro economic data and financial data. We model the profit associated with a patent to be the fraction of the GDP covered by the patent (i.e., the nominal sales of product that our model predicts to be covered by the patent) times the profit margin. From that information we obtain the annual profit protected by the patent. Patents are each in force for a term of about 17 years. We calculate the current value of the patent to be value of the annual profit for the estimated remaining term of the patent. Adding up the valuations for patents owned by a company, we arrive at the company's current patent valuation.