ABSTRACT
A simple model for patent valuation for securitization has been developed and presented in the previous chapter. In this chapter the model undergoes different process of validation in order to establish it. The validity of the model is verified by taking into consideration different scenarios, e.g., testing a) the impact of the model where factor scores and factor weights are fixed, b) the impact of the model when the scores and weights of one of the factors are varying and others are fixed and so on.. Along with validity the model needs to be robust and scalable. Therefore, for checking the robustness and scalability of the model a free and independent parameter, i.e. the level of investment, is introduced so that its variation would contribute to an independent validation of the model. If the model is scalable as well as robust, then varying this independent parameter would result in the same pattern. The effect of variation of this independent parameter is checked on all the selected scenarios. The results from these experiments validate our surmise to a great extent. The curves show a uniform pattern in all the experiments. Thus, based on the results of these experiments it is concluded that the model developed for the purpose of valuing patents in the context of securitization is reasonably valid.
