Method of protecting against a change in value of intellectual property, and product providing such protection

• US 6,018,714 A
• Filed: 11/08/1997
• Issued: 01/25/2000
• Est. Priority Date: 11/08/1997
• Status: Expired due to Term

• Current Assignee: IP Value, LLC, Katherine D. Risen
• Original Assignee: IP Value, LLC
• Inventors: Covello, Diane F., Risen, William M. Jr.
• Primary Examiner(s): Trammell, James P.
• Assistant Examiner(s): ROSEN, NICHOLAS D
• Application Number:
  US08/966,062
• Time in Patent Office: 808 Days
• Field of Search: 705/1, 705/4, 283/54
• US Class Current: 705/4
• CPC Class Codes: G06Q 10/00 Administration; Management
• CPC Class Codes: G06Q 40/08 Insurance
• CPC Class Codes: G06Q 50/184 Intellectual property management
• CPC Class Codes: G06Q 99/00 Subject matter not provided for in other groups of this subclass

Abstract

Disclosed herein is a method of providing protection against an unexpected change in value of an intellectual property asset, which includes:

(a). obtaining a description of at least one intellectual property asset of a first party,

(b). determining a value of the at least one intellectual property asset,

(c). determining a cost of providing compensation for an unexpected change in value of the at least one intellectual property asset, and

(d). offering to provide compensation for at least a portion of any unexpected change in value of the at least one intellectual property asset to a person with an interest in the first party. A corresponding data processing system, insurance proposal form and computer-generated insurance policy form also are disclosed. The method, system and forms of the invention can be used, for example, as part of a "due diligence" analysis in the context of the purchase and/or sale of intellectual property assets.

Claims

1. A data processing system for use in administering an insurance program to insure the value of an intellectual property asset, comprising:

(a). means for receiving a first numerical input which includes at least two of the following numerical values or sets of values;

(i). a first numerical value or set of values which is representative of the likelihood that said intellectual property asset would be found valid if the validity of the asset was determined by litigation,

(ii). a second numerical value or set of values which is representative of a predicted appraised value of said intellectual property asset during a particular period of time, and

(iii) a third numerical value or set of values which is representative of the likelihood of a competitive intellectual property asset causing a significant reduction in the predicted appraised value of said intellectual property asset during a particular period of time, and

(b) means for calculating a proposed insurance premium based upon at least the first numerical input, the proposed insurance premium being calculated prior to a transfer of ownership of said intellectual property asset from a first party to a second party, and being payable by or on behalf of said second party upon or after said transfer of ownership.

2. A data processing system according to claim 1, wherein said means for receiving a first numerical input includes means for receiving at least said first numerical value or set of values and said second numerical value or set of values.

3. A data processing system according to claim 1, wherein said means for receiving a first numerical input includes means for receiving at least said first num erical value or set of values a nd s aid third numerical value or set of values.

4. A data processing system according to claim 1, wherein said means for receiving a first numerical input includes means for receiving at least said second numerical value or set of values and said third numerical value or set of values.

5. A data processing system according to claim 1, wherein said means for receiving a first numerical input includes means for receiving said first numerical value or set of values, said second numerical value or set of values, and said third numerical value or set of values.

17. A data processing system according to claim 1, wherein said transfer of ownership of said at least one intellectual property asset is a purchase by said second party.

6. A data processing system, comprising:

means for receiving input to determine a value of at least one intellectual property asset of a first party,

means for receiving input to determine a cost of providing compensation for an unexpected change in value of said at least one intellectual property asset, and

means for generating an offer to a second party to provide compensation for at least a portion of any unexpected change in value of said at least one intellectual property asset after transfer of said at least one intellectual property asset from said first party to said second party.

7. A data processing system according to claim 6, wherein said means for generating an offer comprises means for generating a written insurance proposal.

8. A data processing system according to claim 6, wherein said value of said at least one intellectual property asset includes at least one future value of said at least one intellectual property asset, and said unexpected change in value is determined at the time for which said at least one future value was determined.

9. A data processing system according to claim 8, wherein said value of said at least one intellectual property asset further includes a current value of said at least one intellectual property asset.

10. A data processing system according to claim 6, wherein said intellectual property asset includes at least one member selected from the group consisting of patent rights, patent application rights, trademark rights, service mark rights, copyright rights, trade secret rights and trade dress rights.

11. A data processing system according to claim 6, wherein said unexpected change in value is based upon a legal determination of at least one of invalidity and unenforceability of said at least one intellectual property asset.

12. A data processing system according to claim 6, wherein the step of receiving input to determine said value of said at least one intellectual property asset includes assigning a monetary value to said at least one intellectual property asset.

13. A data processing system according to claim 6, wherein said at least one intellectual property asset includes at least one patent right.

14. A data processing system according to claim 6, wherein said at least one intellectual property asset consists of patent rights.

15. A data processing system according to claim 6, wherein said means for receiving input to determine a value includes (1) means for receiving input to determine said a value V_j of said intellectual property of said first party in a first business area, and (2) means for receiving input to determine a value I_j representing the impact on said first party of intellectual property of at least one other party in said first business area.

16. A data processing system according to claim 6, wherein said second party is a prospective or actual purchaser of said at least one intellectual property asset.