Patent Value Assessment
date: 2017-12-22

    A foreign enterprise and a company in Shangdong planned to establish a joint venture. The foreign company asserted that a patent is valuable; it hoped to become a shareholder and for the Shandong company to provide more investment. This business transaction was valued at several million dollars. As a precaution, the Shandong company entrusted Kangxin to conduct a patent value assessment. Kangxin investigated the technology advancement, patent infringement risk, and protection of technical advancements; we found that this technology is indeed advanced, but in terms of patent protection, obtaining evidence in case of litigation would prove to be difficult. This would create difficulties for safeguarding of rights and make it more difficult to use the patent as a weapon to exclude competition in the market. If the patent was to be introduced, it would be difficult to reach a monopoly through patent litigation, and so the value of the patent was far overestimated. As a result of negotiations between the two parties, the foreign company abandoned its request for more investment.