Two Important Concepts Pertaining to Business Value Related to Patent Valuation

Making informed business decisions related to managing an intellectual property program as it pertains to patent valuation includes to two key concepts:

1. Market Potential: Assessing the market potential of a patent involves evaluating the size of the market it addresses, the demand for the technology or product covered by the patent, and the potential revenue it can generate. Understanding the market potential helps in estimating the value that the patent can bring to the business by capturing a share of that market.

2. Competitive Advantage: Patents can provide a competitive advantage to a business by offering exclusivity and protection for its innovative technologies or products. Evaluating the strength and breadth of a patent's claims, its enforceability, and its potential to prevent competitors from entering the market or to negotiate favorable licensing agreements can help determine its value as a competitive asset.

Ultimately, if your intellectual property program creates and maintains highly valuable patents, it will help you gain market share in a larger market and help you hold a competitive advantage in that market thus putting your company in a position for revenue and profit to follow.