Average Price Paid for U.S. Patents Declines by 37% from 2012 to 2013
IPOfferings' Patent Value Quotient for 2013 shows a decline in the Average Price Paid per Issued U.S. Patent of 37% from 2012 to $236,453, and a decrease in the Median Price Paid per Issued U.S. Patent of 23% to $170,000.
February 3, 2014 (Newswire.com) - Boca Raton, Fla. - February 3, 2013 - The Patent Value Quotient™ Full Year 2013 Summary shows a decrease in both the Average Price Paid and Median Price Paid for U.S. Patents as compared to similar numbers for 2012. For 2013, the Patent Value Quotient computed an Average Price Paid per Patent of $220,588, a 37% decline from 2012 which had an Average Price of $373,573. The PVQ determined the 2013 Median Price Paid per Patent to be $170,000, a 23% decline from 2012 which had a Median Price of $220,588.
The Patent Value Quotient (PVQ) reports on patent sales, dividing the total value of each patent transaction by the number of issued U.S. Patents to compute the Average Price Paid per Patent. The PVQ also determines the Median Price Paid per Patent. Published quarterly by IPOfferings LLC, the leading patent brokerage and patent valuation services firm, the Patent Value Quotient reported 356 patent transactions in 2012 and 35 patent transactions in 2013. The 2013 Full Year Patent Value Quotient Summary Report is available free at the IPOfferings website.
"While the average price paid for issued U.S. Patents has declined over the last two years, it should be noted that patents are still unusually valuable assets. Even with a decrease to 236 thousand dollars, that still puts the value of a single issued U.S. Patent at almost a quarter of a million dollars, " observes Rich Ehrlickman, founder and president of IPOfferings. "Considering that patents often do not even appear on a company's balance sheet, which is significant value for an unreported asset!
"As a result of the success of the Patent Value Quotient, IPOfferings decided to add patent valuation services to our patent brokerage services," reports Tom Major, Vice President of IPOfferings. "We now offer three patent valuation services that are comprehensive and affordable, and they can be ordered online and are processed in just a few days."
Each Patent Value Quotient Report includes the seller and buyer of the portfolio (unless they requested that they be anonymous), the technology of the patents, the dollar value of the transaction, the number of issued U.S. Patents, and the "quotient," the total sale divided by the number of patents to produce the average paid per patent. The PVQ also determines the Median Price Paid per Patent, since one or two high-priced or low-priced transactions will affect the mathematical average, while looking at both the average and the median gives recipients of the report a better sense of the true transactional values.
IPOfferings publishes a monthly e-letter, IP MARKETPLACE, and the January 2014 issue included the Full Year 2013 Patent Value Quotient Summary Report as a free download for recipients of the e-letter. Others can access the Patent Value Quotient by visiting the report's page at the IPOfferings website: www.ipofferings.com/patent-value-quotient.html.
"We encourage patent brokers, patent auctions, and parties to patent transactions to participate in the Patent Value Quotient by contributing information on transactions they've been involved in," adds Tom Major. The benefits of participating in the Patent Value Quotient can be requested at firstname.lastname@example.org.
About IPOfferings LLC
IPOffering is a leading, full-service patent brokerage and IP consulting firm. Our objective is to help clients optimize the value of their intellectual property. This can include selling, licensing or buying patents or portfolios. IPOfferings also provides IP assessment and strategy expertise, and three patent valuation services. For more information, visit www.ipofferings.com.
Patent Value Quotient is a trademark of IPOfferings LLC.
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