Patent quality is key in driving valuation and defensibility in the courtroom. Although the subject matter (the essence of invention) itself is important, the quality of the patent application will drive a significant portion of the value. Factors, as simple as number of words, or citings influence your patent value, and therefore, it is crucial to read the following five factors when drafting your application.
Disclosures – The more thorough your patent disclosures are, the higher your patent will be valued at. Often, the mere number of words contained in patent specification and the number of figures described will drive up valuation. So, keep the words flowing.
Claims – The breadth and quality of the claims made, as measured by the number of words per claim, and the number of independent and dependant claims, influence the patent quality. The more words and the more claims you have, the better your patent is deemed. More surprisingly, the choice of words can enhance or detract from its value. Words, such as “means” are regarded as limiting language, and if used in a patent application, it negatively impacts value.
Inventors and Ownership – Although the more inventors listed correlate with higher value, it is interesting to note that patents that are assigned tend to have higher valuations than patents owned by the inventor. Of course, the larger the entity they are assigned to, the better are their valuation prospects.
Prior Art or Backward Citations – The number of cited prior art references, and the average age of the references enhance value. Backward citations and number of claims have been related with the novelty of the patent, i.e. technological distance between the protected invention and the prior art.
Forward Citations – Although cannot be controlled at time of application, if you have a portfolio of patents, keep in mind that future citations of your already existing patents, enhance their economic value.
Read more about patents: "When is it a good idea to patent your invention" and "Get patents cheaply and don't worry about quality."
