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IP Portfolio Valuation

Parsa Wireless Communications provides comprehensive valuation services to help our clients optimize IP management and maximize IP value. In addition to conventional methods, Parsa Wireless collaborates with several well-known IP valuation experts, and offers customized services to meet our clients’ specific needs. The customized valuation package includes two major approaches, one based on the Modified Market Approach, and the other one based on Royalty Income Approach.

Modified Market Approach (MMA)

For a portfolio of issued patents, MMA valuation follows a 3-step process

  1. Valuations based on comparable transactions controlled for size, technology, and size & technology.
  2. Valuations based on patent valuation econometric model, assuming various scenarios of strategic patents.
  3. Determine the most reasonable valuation.

For patent assets, including both issued patents and patent applications, we will use comparable transactions of patent assets and apply the patent assets valuation model to determine the valuation, essentially going through a similar 3-step process. Finally, the valuation of patent applications will be derived from the asset value and patent value.

Royalty Income Approach (RIA)

For those clients who would like to look into license or assertion market for valuation, we offer in-depth economic analysis and financial modeling to

  1. Identify the relevant market and products;
  2. Analyze the market share and structure;
  3. Estimate Total Addressable Market (TAM);
  4. Calculate royalty rate or lump sum payment;
  5. Determine the most reasonable valuation.

View Patent Valuation Flowchart