On what basis patent is commercialized?

Commercializing a patent in other words mean licensing (Out/In). To do this we need to determine the value of a patent. That means determining value of patent is in terms of:

1. Technology
   1. Determining validity of patent
   2. Determining FTO
   3. Identifying key technical parameter and next best alternative technology
   4. Depth and brevity in claims (patent scope)
   5. Legal status
   6. Name of the organization that owns the patent
   7. Any joint venture
   8. Scientific linkage
   9. Forward & backward citation
   10. Technology cycle time
   11. Identity the patent product (patent Vs product linking)
   12. Possible applications
2. $ Dollor (quiet tricky part….)
   1. R & D spending
   2. Market share of valuating technology
   3. Market value in other application area
   4. Calculating the value of existing assemble components (standard component value)
   5. Calculating valuating technology by subtracting standard components value

I believe there are many more key points missing here, please feel free to add.

Following is iSuppli’s estimated cost breakdown of the iPhone . This breakdown is what required to estimate true value.