A Multiple Regression Model For Patent Appraisal

Statastics For Managers ArticleSummary

Submitted by: M Vamshi Krishna,No.11135,Section-A
Research question:
Concerning the general patent trading mechanism, this paper proposes a systematic
patent appraisal model to provide patent transferors and transferees a reasonable price
suggestion ofthe target patent.
Importance of the model:
The proposed model and platform can enhance patent trading performance and,
therefore, the enterprise R&D tasks can be accomplished more efficiently.
Article summary:
Patent demanders have to gather the relevant data of patents through online patent
ofces for brief introductions of patents.This study proposes quantitative models of
patent appraisal factors and a Multiple Regression model for patent appraisal to
present an automatic patent price determination mechanism.After acquiring the data
sheet of the target patent, the patent demander can communicate with the patent
transferor and sign the non-disclosure agreement to fully understand details of the
target patent. The existing patent trading process is time-consuming and labor-intensive
Owing to the increasing patents and lack of an open patent market, it is necessary to
establish a channel for patent providers and buyers to lower the search and transaction
costs for patent trading.In regard to the general patent trading mechanism, this paper
proposes four patent appraisal factors including "Patent transferor", "Patent transferee",
"Patent features" and "Patent trading specications" to establish a systematic patent
appraisal model.A more comprehensive patent appraisal method should be developed
to set up a patent appraisal mechanism for reasonable calculation of patent values.
Patent/technology trading platform Since, intellectual properties are transactional
resources, making prots by applying patents is the feedback and reward for creativity
to the patent holder whereas the patent buyer has to pay a price for using the patent.
Patent appraisal model Output License Fee Appraisal factors Indices Patent transferor
R&D costs Patent maintenance fee Enterprise competency R&D capability
Commercialization prots Product market scale Enterprise competency R&D capability
Classication Uniqueness CI TCT Authorization duration Authorization status
Authorization frequency Patent transferee Patent features Table II. Indices for patent
appraisal Trading specications . Patent transferor factor The patent investments and
enterprise prole of the patent transferor are the fundamental indices considered in the
patent transferor factor.The number of authorized patents and patent R&D investment
cost indicates the R&D capability of an enterprise and can be derived via the following
equation: k X N p N 1 N iP N k n1 ni nk ni P P
i1 Patent authorization efciency indicates the patent acquisition efciency of an
enterprise.Patent transferee factor In addition to the indices such as prots and
predicted market scales of patent derivatives, the business status of patent transferee
should also be used for patent appraisal.
Determination of patent commercialization market scale IMDS 106,9 Pi the ith patent
in the patent database, i 1,2,.M SL(Pi) science linkage index of patent Pi TCT(Pi)
technology cycle time of patent Pi Ti 1318 the ith patent type TIPC(Pi) the IPC
subclass of patent Pi T(Pi) type of patent Pi VC(C) uniqueness index for the IPC
subclass C VT(Ti) patent type index of type Ti 3.3.2 Step: acquire patent type index.A
patent transferee should evaluate the time required for a patent to be commercialized
for mass production and then use the time as an index for the patent LD. The LD can be
as long as the expiration day of the patent rights.The user can provide the patent
documents to the system via the Patent Upload module (Figure 5). On the other hand,
the patent transferee should also register a user account to search the target patent by
specifying his requirements via the Patent Search module.
If the patent transferee would like to acquire the suggested license fee of the selected
patent, he can assign the factors to be incorporated in the appraisal regression model
and the suggested license fees of the target patent will be provided to the transferee as
a reference for patent trading.Based on the proposed model, a patent trading platform
incorporated with patent transferring, patent search and patent appraisal functions is
developed in order to facilitate patent trading efciency.