Patents Through the Economics Lens: Valuing, Protecting, and Defending

Patents are granted as a way to spur innovation yet profiting from that innovation can be a challenge. Many patents never make it to market and, of those that do, there are those that are infringed and others that face product liability issues. Standing at the head of all these issues is the value of the patent. The more valuable the patent is the more likely it will be that capital can be raised and the idea/product will be brought to market. However, the flip side of the valuable patent coin is the increased probability that someone will infringe the patent; and, in the event of product liability allegations, a valuable patent sends a signal that there are deep pockets for a law suit. In this presentation, economic factors will be considered that affect valuing, protecting, and defending a patent.