Industry Reports - More Updates

IP valuations

Competition Dynamics, Inc

  • 2 Oct

    Is the price paid for a patent portfolio a cap on patent damages?

    It is sometimes asserted that the price paid for a patent portfolio represents, without further modification, its fair market value in litigation. This argument is specious: it ignores the risks and costs (in this case, those associated with enforcing the acquired rights) that are necessary to earn a return on the investment. This article summarises several risks priced into patent transactions, but not into damages. Full text

  • 18 Sep

    An approach to measuring patent quality using citation data

    The same erroneous claim is repeatedly raised in court – that the quality of a patent portfolio can be proxied by the quantity of its patents. This article summarises how counting the number of patents will lead to inaccurate inferences and describes a better method, which uses patent citations to measure patents’ quality and value. Full text

  • 28 Aug

    Disagreements among technical experts with regard to patent essentiality

    Patent valuation professionals normally rely on technical evidence and studies to determine the essentiality of patents. However, as technical experts work independently and may have their own technical opinions or biases, their determinations of which patents are actually essential often conflict. Full text

  • 14 Aug

    The misuse of effective rates in FRAND determinations

    Though innovators promise standard development organisations to license their SEPs on FRAND terms and conditions, there is a question over whether effective rates against which contracts are evaluated can enable reliable comparisons. Even if a licensor executes identical terms and conditions, can effective rates capture actual contract terms? Full text

  • 31 Jul

    Royalty stacking in FRAND litigation – part two

    In the second part of this two-part series, experts take a deep dive into the obstacles to proving the existence of a royalty stacking problem, as well as the difficulties with obtaining a remedy from courts against any individual party. Full text

  • 24 Jul

    Royalty stacking in FRAND litigation – part one

    According to standards implementers, royalty stacking is a prevailing problem in SEP litigation. Further, they claim that individual licensors legally cause that problem, thereby violating their FRAND obligations. The first part of this article gives the economic definition of the ‘royalty stacking problem’ and suggestions on how to deal with it. Full text