Idea Value Calculator (IVC) User's Guide

The idea value calculator (IVC) allows the value of an idea to be estimated. The method of calculation is based on the assumption that the value of an idea is equal to the sum of all royalties that would be collected on an equivalent valid patent based on this idea. It is assumed that the patent will not be invalid during its life. If there is a need to estimate an idea's value under the assumption that the equivalent patent would be invalid after t years, a user needs to decrease the term (on t years) to find the value of the idea in this case.

1. Input

1. Estimate expected income from products/services based on realization of the idea during the term of an equivalent patent-validity period under three scenarios: optimistic, average, and pessimistic. Enter these data into the corresponding boxes on the main form.

2. Enter an average rate of return (% per year) into the "Rate" text box.

3. Select "Settings" from the menu." The "Settings" form will appear.

4. Enter subjective probabilities for each scenario into the corresponding text boxes.

5. Enter the term of validity of the equivalent patent based on the idea.

6. Click on the "Back" button. The "Main" form will appear.

7. Click on the "Calculate" button. The result will be displayed in the "Value" text box.

Example 1.

2. Output

The resulted value is shown in the "Value" text box.