Intellectual property valuation: developing a model for patent valuation

Document Type : Research Paper


Industrial Engineering and Management Systems Department, Amirkabir University of Technology, Tehran, Iran


With the growing knowledge of economics, the role of intellectual property in the development of international businesses and the boom of the national economy has become increasingly pronounced. There are many items on the intellectual property list, but the patent may be the most important intellectual property. Patent rights that bring patent owner immunity are very valuable. These licenses have been tradable in certain markets, like many other economic markets, and one of the concerns of technology researchers has always been to calculate the value of patents and to decide whether or not to buy them. The present study has developed a system for patent valuation. In the first step, the decision to invest or not invest in intellectual property (policy making) is examined using Ohlsen's model. In the second step, the patent valuation is done by using the real option valuation methods.  Implementation of Ohlsen's model in companies listed on the Tehran Stock Exchange has highlighted the importance of advertising as one of the customer-centric intellectual property of the share price. in second step, a patent is valued in terms of the option to assign and simulate future patent cash flows using the average return process.