A very interesting discussion at the Commerce Department: patent holders paying fees based on the fair market value of their patents rather than flat fees. This will be worth monitoring closely and understanding key valuation questions. Will there be a designated methodology to estimate fair market value? What if the patent has significant value but is not yet generating revenues - is the payment delayed until cash flows attributable to the patent are generated? Will this be applicable to all patents or just those with a minimum fair market value? These are a few of many questions regarding just the valuation aspects.
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An Overhaul to the Patent System - Fees Based on Patent Value?
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Commerce Department officials are discussing charging patent holders 1% to 5% of their overall patent value, a shift that could dramatically increase fees, according to people familiar with the matter. The idea is being considered by Commerce Secretary Howard Lutnick as part of his plans to raise revenue and narrow the government’s budget deficit.
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