The Certified Patent Valuation Analyst (CPVA) DesignationPublié le lundi 19 juin 2023
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David Wanetick, CEO, The Certified Patent Valuation Analyst (CPVA) Designation
David Wanetick prepares Company and Patent Valuation Reports that are used to facilitate transactions such as capital raises, sales of companies, sales of patent portfolios and licensing agreements. His reports are instrumental in pricing transactions worth tens and even hundreds of millions of dollars. David’s clients include Fortune 500 companies, emerging companies, private equity and venture capital funds, universities and government agencies.
Why is Patent Valuation Important?
Inventors can spend decades pursuing and patenting their research. Many inventors invest all of the money that they can get their hands on to further their research. Quite often, these efforts lead to failure. However, when valuable patents are obtained, assignees cannot afford to rely on their negotiating adversaries to pay them what their patents are worth. Rather, inventors must be able to articulate what their patents are worth. Those who cannot articulate the value of their intellectual property are condemned to accept whatever price their negotiating adversaries are willing to pay.
Numerous studies report that intangible assets represent at least 70% of corporate value. However, few corporate executives can articulate that value. As a result, patentees are deprived of the value they are owed when transactions occur.
How does the CPVA program train people to value patents?
We take a deep dive into a multitude of valuation methodologies and metrics. We review many permutations of the market method, income methods, options methods and probabilistic methods. We also teach more complicated valuation methods such as Black-Scholes and Markov Chains.
One half-day session focuses on calculating patent damages resulting from infringement. Where possible, I share war stories. We provide an Excel sheet with all of the formulas that we review together. Through our proprietary Patent Valuation Gauntlet, we discuss many nuances of citation analysis, prosecution history analysis, claims analysis, specifications analysis and drawings analysis.
The CPVA program is meant to be highly practical, rather than theoretical. We have a whole course dedicated to running a mock licensing negotiation. Also, we recently added an eight-hour course on Best Practices for Monetizing Patents. This seminar (now delivered via archived webinar) features more than 15 world authorities on brokering patents, discussing everything from working with patent brokers to litigation finance and from understanding post-sale obligations to selling into patent pools.
Dozens of articles on patent valuation are provided as are several hundred PowerPoint slides. We also make sample Patent Valuation Reports available to CPVA candidates so that they understand how to write such reports.
When would a CPVA be called upon to write a Patent Valuation Report?
Patent Valuation Reports are most often used in patent litigation (for determining damages) and in effectuating transactions such as patent sales, patent licensing agreements, the sales of companies and capital raises. Patent Valuation Reports are also used when patents are transferred to different jurisdictions and to patent holding companies. Patents are valued in the context of joint-venture disputes and intra-company disputes. Among the other instances when patents are valued are in connection with spin-offs, transfer pricing, tax issues, estate issues and when patents collaterialize loans.
How long has the CPVA program been running?
The CPVA designation was created in 2010. However, I began delivering several of the courses that are part of the CPVA program as early as 2007. I delivered the CPVA program live in much of the world since 2010. We have run the courses in about 20 cities in the USA, in Canada, the UK, the Netherlands, France, Spain, Germany, Belgium, Denmark, Israel, Dubai, India, China, Hong Kong, Thailand, the Philippines, Singapore, among other countries. People have virtually attended the CPVA program from about 30 additional countries.
Who typically attends the CPVA training?
Most of the attendees are licensing professionals, technology transfer executives and IP asset managers. Many patent lawyers take the CPVA training. We do have some inventors, directors of research, examiners and investors as well.