The ability to accurately determine patent value has always been expensive and time consuming to ascertain requiring input from patent attorneys and economists. An exciting new research article published by two US university professors (Andrew Torrance, the Earl B. Schurtz Research Professor at the KU School of Law and Jevin West, the University of Washington Information School) claim to have found a quick way of assigning patent importance.
The professors’ co-authored recently published article was entitled: “All Patents Great and Small: A Big Data Network Approach to Valuation”. The article details a study the two university professors undertook using a set of big data provided by the USPTO (covering information about every US patent issued from 1976 to the present). The professors believe the study has resulted in a new and powerful method to evaluate patents using (newly developed algorithms to analyze big data (including patent citations) to instantly determine which patents are the most important. The results show that litigated patents tend to be much more valuable than those not litigated and that the value of litigated patents tends to rise strongly with the level of court in which litigation occurs.
These methods claim to be able to help patent holders determine the patents are worth protecting, defending as well as being able to identify which patents to buy, sell or license.