valuation & consulting in Russia

VALUATION Corp. Provides Professional Valuation of Patents for Inventions, Utility Models, Industrial Designs and Selection Achievements in Russia

Valuation Subject

In Russia patent is a document issued by the Federal Service for Intellectual Property (ROSPATENT) certifying priority, authorship and exclusive right to an invention, utility model or industrial design. Patents for selection (breeding) achievements are issued by Ministry of Agriculture of the Russian Federation.

According to the Russian law, for various types of patentable IP the duration of patent also varies as follows:

Since patent is only a document certifying the rights of the patent holder to a particular IP object, so, strictly speaking, it cannot be a valuation subject. When we mention “patent valuation”, in the strict legal sense we mean that the subject of valuation is the exclusive right (see the definition of the exclusive right in Russia) to a particular object of intellectual property protected by this patent.

Though not entirely correct, the term “patent valuation” has become firmly rooted in casual business speech circulation, so here we will use it, meaning that the valuation subject in this case is the exclusive right to invention, utility model or industrial design that the patent protects.

In case of valuation of a specific set of rights, different from the exclusive right to the patented IP, usually the term “license valuation” is used.

Approaches to Patent Valuation in Russia

The market value of a patent for an invention (or other patentable IP object) is mainly determined by the economic benefits that the patent holder can receive from using his patented intellectual property in commercial activity or other areas. The examples of such benefits are:

Most often, valuation of patents in Russia is conducted using the income approach to appraisal.

The main advantage of income approach is that its methods allow calculating the value of the subject patent based on potential income that the patent holder can receive from using his patented intellectual property, thus connecting the patent’s economic benefits (commercial effectiveness) and its market value.

Applicability of comparative (market) and cost approaches to patent valuation in Russia is very limited.

Comparative (market) approach, based on a comparison of the subject patent to its recently sold analogues whose price is known, is almost never used because the IP market in Russia is rather non-transparent and information on patents transactions is almost always closely held and difficult to access.

Cost approach, based on calculating reproduction cost of an object, is generally ineffective for valuation of patents, because the market value of a patent is often rather weakly connected with the costs of IP development and commercially successful IP objects are often made with very modest budgets. The main applications of cost approach to patent valuation in Russia are for accounting, notarial and taxation purposes.

Our Services

Our firm provides professional services for independent valuation of patents for inventions, utility models, industrial designs and selection (breeding) achievements.

We have more than 20 years of experience in valuation of intellectual property in Russia for various purposes including:

For more information on valuation of patents in Russia, please contact us.

Information and Documents for Patent Valuation

The following documents and information are usually required for patent valuation:

Depending on the purpose of valuation and other factors, the above list of information and documents, in accordance with the nature of the subject IP, may be reduced or expanded after our detailed review of the valuation assignment.

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