The value of any given portfolio of patents cannot be measured by the quantity of patents alone. Rather the number of valuable patents within the portfolio determines its value. Valuable patents are patents that provide substantial economic benefit to their owners. Therefore the valuation determination requires as a first step that each patent be rated accordingly.
The Pelent Patent Rating System is a quantitative system that analyzes each claim and rates each patent using a scale “A” through “D”. A-rated patents represent patents with the highest economic value, B-rated patents have medium value, C-rated patents have low value and D-rated patents are unlikely to have value.
We start with the basic assumption that patents that are licensable are valuable. Licensing potential is further determined by two primary prerequisites; a) the probability that a patent has commercial value and b) the extent of effort required to demonstrate use of the claimed invention - referred to as “Detectability”.
Patents are rated according to Commercial Value and Detectability. The system analyzes each patent claim and each patent claim. While ratings are determined for all independent claims, the overall patent rating is determined by the rating of the independent claim with the highest score. Both Commercial Value and Detectability are individually scored and combined to formulate the patent rating.
Pelent is the only system that identifies patent value. Patent ratings provide critical insight for a given portfolio. Raw data results are compiled in an MS Excel spreadsheet format. The format includes, the overall Patent Rating, Detectability and Commercial Vale scores, best claim and the claim element count for the best claim as well as related patent bibliographic data. The raw data format is useful for specific requirements, for example in reducing maintenance renewal costs, the Detectability score can be used to identify patents that should be allowed to lapse
View a sample Patent Ratings Report