ABSTRACT

In this chapter, a detailed investigation on various areas of patent utilization is performed, and the reasons for the poor patent exploitation in the field of securitization, viz. the absence of a suitable valuation method, legal issues, regulatory issues, jurisdictional issues and global economic crisis, are put forward. Each reason is carefully dealt with, among which the valuation aspect has been selected as the main center of focus in the chapter. Patent valuation is a critical job for valuation experts. Patents are intangible assets and possess features far different from those of known tangible assets. Thus, the existing valuation methods that are applied to the tangible assets cannot be directly applied to the intangible assets namely patents. Moreover, valuation of the intellectual property assets has not been standardized through promulgation of any guidelines. Thus, all these issues have led to complexities in patent valuation. This chapter provides readers with guidance on the different hindrances faced by the patent securitization market.