8/11/2019 A Multiple Regression Model for Patent Appraisal

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A Multiple Regression Model For Patent Appraisal

Statastics For Managers ArticleSummary

Submitted by : M Vamshi Krishna,No.11135,Section-AResearch question:

Concerning the general patent trading mechanism, this paper proposes a systematicpatent appraisal model to provide patent transferors and transferees a reasonable pricesuggestion 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 patentofces for brief introductions of patents. This study proposes quantitative models ofpatent appraisal factors and a Multiple Regression model for patent appraisal topresent an automatic patent price determination mechanism.After acquiring the datasheet of the target patent, the patent demander can communicate with the patenttransferor and sign the non-disclosure agreement to fully understand details of thetarget patent. The existing patent trading process is time-consuming and labor-intensiveOwing to the increasing patents and lack of an open patent market, it is necessary toestablish a channel for patent providers and buyers to lower the search and transactioncosts for patent trading.In regard to the general patent trading mechanism, this paperproposes four patent appraisal factors including "Patent transferor", "Patent transferee","Patent features" and "Patent trading specications" to establish a systematic patentappraisal model.A more comprehensive patent appraisal method should be developedto set up a patent appraisal mechanism for reasonable calculation of patent values.Patent/technology trading platform Since, intellectual properties are transactionalresources, 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 transferorR&D costs Patent maintenance fee Enterprise competency R&D capabilityCommercialization prots Product market scale Enterprise competency R&D capabilityClassication Uniquenes s CI TCT Authorization duration Authorization status

Authorization frequency Patent transferee Patent features Table II. Indices for patentappraisal Trading specications . Patent transferor factor The patent investments and

8/11/2019 A Multiple Regression Model for Patent Appraisal

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enterprise prole of the patent transferor are the fundamental indices considered in thepatent transferor factor.The number of authorized patents and patent R&D investmentcost indicates the R&D capability of an enterprise and can be derived via the followingequation: k X N p N 1 N iP N k n1 ni nk ni P Pi1 Patent authorization efciency indicates the patent acquisition efciency of anenterprise. Patent transferee factor In addition to the indices such as prots andpredicted market scales of patent derivatives, the business status of patent transfereeshould also be used for patent appraisal.

Determination of patent commercialization market scale IMDS 106,9 Pi the ith patentin 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 IPCsubclass of patent Pi T(Pi) type of patent Pi VC(C) uniqueness index for the IPCsubclass C VT(Ti) patent type index of type Ti 3.3.2 Step: acquire patent type index.Apatent transferee should evaluate the time required for a patent to be commercializedfor mass production and then use the time as an index for the patent LD. The LD can beas long as the expiration day of the patent rights.The user can provide the patentdocuments 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 byspecifying his requirements via the Patent Search module.

If the patent transferee would like to acquire the suggested license fee of the selectedpatent, he can assign the factors to be incorporated in the appraisal regression modeland the suggested license fees of the target patent will be provided to the transferee asa reference for patent trading.Based on the proposed model, a patent trading platformincorporated with patent transferring, patent search and patent appraisal functions isdeveloped in order to facilitate patent trading efciency.