The Legal Framework of Patent Valuation: A Comparative View between the US, the PRC and Vietnam

Abstract

In today’s world, intellectual property (IP) rights have become a significant part of overall corporate value as well as a “driver of important market transactions.” Nevertheless, patent commercialization and claims for damages due to patent infringement are often obstructed by parties’ differing positions on the patent value. To improve Vietnam’s legal and practical environment for patent valuation, this paper constructs a comparison of the prevailing frameworks of the United States and the People’s Republic of China with that of Vietnam to make recommendations meeting the stated purpose. An analysis of relevant academic literature suggests that parties should be allowed to choose their preferred valuation technique even when having engaged valuation professionals. Also, valuation service providers should be able to demonstrate the underlying rationale for selecting a particular valuation method. Other valuation techniques, such as forward citation counting, should also be studied to provide private parties, patent valuators and relevant state agencies in Vietnam with more options when facing the need to value a patent.