ABSTRACT
This chapter provides background for the formulation of a required model for patent valuation for securitization. This chapter deals with a detailed procedure relating to the collection, examination and analysis of the data and necessary information. On examining these documents various sub-factors are identified, which are then validated through an exploratory interview with a panel of experts belonging to the IP and finance sectors. Therefore, according to experts’ advice and also based on similarities and commonalities, certain sub-factors are clubbed into a single sub-factor. Thereafter these sub-factors are clubbed into three key factors: product strength, deal crafting and quality of independent professionals involved. The key factors and sub-factors thus identified and validated are assigned two components: factor weight and factor score. Based on these factor scores and factor weights, a rationalization coefficient is formulated. The rationalization coefficient is an important determinant and works as a modifier to the existing patent valuation methods for the purpose of securitization. Rationalization coefficient thus introduced, formulated and computed have to be verified for its consistency. After doing so the rationalization coefficient is taken into consideration for developing a simple discrete method of valuation of patents to be applied in case of securitization.
