Evaluate the strength and financial potential of your intellectual property by combining qualitative expert scoring with quantitative citation metrics.
1. Normalized Scorecard (SCNorm):
SCNorm = [(WStrategic × SStrategic) + (WTechnical × STechnical) + (WTeam × STeam)] / 100
2. Citation Quality Index (ICitation):
ICitation = [(NForward Cites × 0.6) + (IH × 0.4)] / Benchmark Volume
3. Portfolio Value Index (PVIXModel):
PVIXModel = N(SCNorm) × N(ICitation) × N(Legal Scope)
(Where N represents normalization to a standard multiplier scale).
4. Estimated Valuation (VEst):
VEst = VComparable × PVIXModel
Intellectual Property (IP) is often the most valuable asset class for biotechnology and technology companies, yet it remains one of the hardest to value accurately. The Patent Portfolio Calculator addresses this challenge by utilizing a "Hybrid Valuation Logic." Unlike traditional financial models that rely solely on historical cash flows—which are often non-existent in early-stage startups—this calculator integrates subjective expert scoring with objective quantitative metrics. By using the Patent Portfolio Calculator, founders, investors, and IP managers can bridge the gap between technical innovation and financial worth.
The core of this tool lies in its three-pronged approach. First, the Weighted Subjectivity Logic allows users to customize the importance of the team, strategy, and technology. For example, in early-stage ventures, the execution team is often more critical than the nascent technology itself; the Patent Portfolio Calculator allows you to weight the "Team" category higher to reflect this reality. Second, the Citation Quality Logic incorporates bibliometrics (Forward Citations and H-Index) to objectively measure how influential the patents are within the industry. A patent that is frequently cited by other companies suggests high technical relevance and blocked competitors.
Finally, the tool synthesizes these inputs into the Portfolio Value Index (PVIX). This index acts as a multiplier applied to a baseline comparable value. If your PVIX is greater than 1.0, your portfolio is theoretically stronger than the market average, justifying a premium valuation. Conversely, a score below 1.0 indicates weaknesses in scope or impact. Whether you are preparing for a merger, looking for licensing deals, or simply auditing your assets, the Patent Portfolio Calculator provides a defensible, data-driven starting point for negotiations. For more on IP valuation standards, resources like the World Intellectual Property Organization (WIPO) and Wikipedia's Patent Valuation page offer excellent foundational knowledge.
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The PVIX is a composite score derived from your scorecard, citation impact, and legal scope. It acts as a multiplier. A PVIX of 1.0 implies your portfolio is average compared to the baseline. A score of 1.2 implies a 20% premium in value due to superior IP strength.
This is the estimated value of a similar company or patent portfolio that was recently sold or valued. You can find this data in industry reports, acquisition press releases, or by consulting with IP valuation experts.
Forward citations occur when newer patents reference your patent as "prior art." A high number of forward citations indicates that your technology is foundational and that competitors are building upon (or are blocked by) your innovation.
Similar to academic publishing, a Patent H-Index of h means you have h patents that have been cited at least h times. It measures both productivity and citation impact simultaneously, filtering out "one-hit wonders."