Detailed Information on the Evaluation of Patent Rights according to the Steinbeis TIB Method

The evaluation model of Steinbeis TIB uniquely joins qualitative and quantitative aspects within the scope of an evaluation of patent rights.  In this way, there is extensive consideration of all known chances and risks.

Qualitative Aspects

The qualitative part of the evaluation considers technological, legal and business variables which influence the value of a patent, and encompasses the following dimensions with 39 criteria:

  • Patent-rights dimension
  • Technological dimension
  • Financial dimension
  • Market dimension

The patent-rights dimension serves to evaluate patent-law-related facts in order to estimate legal certainty.  The technological dimension evaluates the attractiveness of a new technology mirrored against the existing state of the technology.  The market dimension determines the resonance of the technology that can be expected in the target market.  In the financial dimension, the criteria of the make-or-buy decision in particular are considered, from the viewpoint of potential target companies.

Quantitative Aspects

The quantitative evaluation serves to determine the monetary value. Here, the results of the qualitative part of the evaluation are considered in the monetary determination, in the scope of a multi-layered model.  This is done based on the methods described in the DIN 77100 standard.  The typically employed license-analogy model is used as a comparative, market-oriented methodology, with the actually paid licensing fees in an existing, already carried-out transaction with similar patent families serving as the comparison object.  In the course of this, the most current possible transaction prices of comparable patent families are used as an evaluation yardstick for the determination of, for example, licensing fees.  The expected turnover figures which serve as the basis for these estimates are individually determined by an analysis of the target market.

The sum of the present values of the expected future licensing receipts over the time period under consideration yields the approximate current monetary value of the patent family.  This monetary value is determined in the course of the quantitative evaluation in dependence on the results of the qualitative evaluations.  For this, the national or regional areas of coverage of the patent rights being evaluated are weighted according to their economic significance.

Advantages of the Steinbeis TIB Method

  • The evaluation of the patent rights according to qualitative and quantitative aspects leads to a resilient and well grounded opinion of the benefits of the patent rights which can be expected in the future.
  • The requirements of the DIN 77100 standard are completely fulfilled.
  • The Steinbeis TIB method is particularly suited to the evaluation of large portfolios.