Both CV and EV are widely recognized as standard criteria for patent valuation. Traditionally, evaluating patents has relied on costly and often inconsistent expert analysis. In contrast, our AI system is trained on thousands of proven, high-value patents and leverages the collective knowledge of a broad network of patent and technical experts. The result is a data-driven, accurate, and fast assessment process.

Pelent’s patent rating system provides a quantitative approach to evaluating patents, analyzing each claim and assigning a rating on a scale from “A” to “D”:

• A-rated patents represent the highest economic value
• B-rated patents indicate medium value
• C-rated patents have low value
• D-rated patents are unlikely to possess commercial value

The system evaluates Commercial Value and Enforceability Value independently. The scores are then combined, and the overall patent rating is determined based on the independent claim with the highest combined score.

Commercial Value represents the worth of a patent in terms of its utility in commercial or business activities. It reflects the revenue a patent can generate for a business through its application or licensing. A granted patent does not guarantee commercial value; in fact, most patents never achieve significant market relevance. Licensees and buyers typically assess whether a patent can support a revenue-generating licensing program by considering factors such as who is using the patented technology, whether it contributes to profits or cost reduction, the revenue generated by the associated products, and the patent’s contribution to that revenue. Commercial Value is expressed as a decimal on a scale from 0 to 1, with 1 representing the highest score.

Enforcement Value measures the effectiveness of actions taken to uphold a patent holder’s rights against unauthorized use, infringement, or violation of their patent. It reflects the likelihood of success in negotiating licensing agreements with infringing parties and obtaining financial compensation through settlements before or during litigation. Enforcement Value heavily depends on how the claims are drafted and their ability to withstand legal scrutiny. Claims should be explicitly supported by the specification, written to be understood by a person of ordinary skill in the art, and—most importantly—be enforceable. Simply put, if it cannot be demonstrated that all elements of an issued claim are being practiced, the patent cannot be asserted. Evidence of Use (EOU), such as a detailed claim chart, provides concrete proof that a patented invention is being used in a product and demonstrates how the claim is infringed (see Patent Services). Licensees and buyers often base their decisions on the presence of strong EOU. Regardless of a patent’s Commercial Value, insufficient Enforcement Value can significantly reduce its overall value. Many inventions are knowingly infringed because enforcement is difficult or economically unjustifiable. Enforcement Value is expressed as a decimal on a scale from 0 to 1, with 1 representing the highest score.

Patent claims provide owners the “right to exclude others,” i.e. they put the world on notice with respect to the subject area and boundaries of an invention. Strong Evidence of Use (EOU) is a critical component in the successful monetization of a patent portfolio, as buyers and licensees frequently make their decision based on compelling EOU in the form of a claim chart.

It may take several years from the filing of an invention to the grant of a patent. During this period, competing products may enter the space covered by the patent. Strengthening a patent portfolio therefore involves ongoing product monitoring and drafting new claims that map to products as they come to market.

Many patent prosecutors have traditionally been trained to draft broad claims; however, recent court decisions have demonstrated the limitations of this approach. Highly valuable claims are often carefully targeted and intentionally include relatively narrow claim elements. These narrowing elements should serve as clear points of patentable distinction and can make the claims more difficult to invalidate.

Claim language should be explicitly supported by the patent specification, or at least construed as commonly understood by a person of ordinary skill in the art. Most importantly, claims must be detectable in practice. Simply stated, if it cannot be demonstrated that a party is practicing all elements of an issued claim, there is no viable basis to assert the patent.

U.S. patent assets often account for the majority of a portfolio’s value, in part because the United States offers the potential for significant damage awards. The U.S. patent system is also unique in permitting the filing of continuation applications, which allow inventors to pursue additional claims while benefiting from the earlier filing date of the original application. A continuation application may be filed at any time while at least one application in the patent family remains pending.

Many inventors fail to take advantage of this opportunity, choosing instead to accept the issuance of an initial patent without filing continuations to keep the patent family alive. As a result, the portfolio becomes static and unable to evolve. Buyers are often reluctant to acquire portfolios that can no longer be expanded or adapted. Leveraging continuation applications to strengthen and extend a patent family can significantly enhance portfolio value by providing broader and more targeted patent protection.

We streamline the patent development process to minimize the inventor’s time commitment while delivering a cost-effective, results-driven solution. By integrating technical, legal, and business expertise within an efficient, milestone-based model—without billable hours—we enhance the value and impact of each patent application. Our approach includes developing a comprehensive patent strategy aligned with both immediate objectives and long-term goals. Through our exclusive collaboration with SWOT Law and Taisei IP, clients gain access to a full spectrum of legal and patent agency services.

A Patent Assessment enables patent managers to quantitatively evaluate the value of a published application or granted patent while providing actionable insights on how the patent can be strengthened. The assessment report includes value ratings, citation analysis, and claims analysis. To offer a broader competitive perspective, the report identifies other entities with related patents and outlines their patenting activity and timelines. It also benchmarks the patent’s rating against comparable patents held by other companies and competitors, helping to assess its relative strength within the market.

The analytics are presented in a clear, easy-to-read format, enabling patent managers to make informed decisions on how to strategically leverage their portfolio. This includes identifying low-value patents to reduce maintenance costs and optimize overall portfolio performance.

The first step is understanding the assets within your own patent portfolio. Traditionally, this has involved relying on subject matter experts (SMEs) to analyze each patent. While SMEs are skilled at assessing the key factors that influence patent value, their evaluations are inherently subjective and prone to error—even among experienced patent professionals. Such errors can result in thousands of dollars in wasted effort and legal costs, and even a single overlooked claim element can significantly diminish a patent’s value. For large portfolios, relying solely on SMEs quickly becomes cost-prohibitive.

The alternative for portfolios relies on using automation. Commercial patent analysis tools automate certain tasks; however, none are geared specifically for enforceability and commercial value. Furthermore, the tools are generally expensive, require training and a skilled user. The problem is that these tools typically rely on patent office data and there is simply no information that can be directly applied since patents are granted irrespective of whether allowed claims can be enforced or not. Some attempts have been made to extract inferences, for example using claim word count as an indicator; however, our experience and feedback from clients has shown that these methods are generally inaccurate.

We help our clients maximize the value of their patent portfolios. By identifying high-value patents and determining how to strategically leverage them, clients can enhance their company’s bottom line. Our analysis enables informed decision-making for portfolio benchmarking, identifying patents suitable for licensing, guiding portfolio development, and reducing maintenance costs by pinpointing low-value patents.

An assessment enables users to evaluate the overall value of a patent portfolio, identify technology areas with the highest concentration of valuable patents, uncover hidden-value patents, and flag weaker patents for potential abandonment. The resulting report can serve as a foundation for portfolio development decisions or to enhance a company’s perceived value. Typical applications of portfolio analysis include:

·         Identifying valuable portfolios

·         Valuation

·         Licensing

·         Impairment Testing

·         Benchmarking

·         Strengthening patent portfolios

Pelent’s Portfolio Analyzer delivers a comprehensive portfolio snapshot, featuring Patent Rating metrics and a “floorplan” visualization that enables users to focus on technology areas with the highest concentration of valuable patents. A Quickview URL provides a dynamic link to view the snapshot. Hovering over any block displays a technical description of that block, along with the number of patents and their ratings contained within it.