Software patent policy keeps getting press for the amount of litigation rife. Many question whether the excessive litigation of software companies is hurting innovation and there are many sides to this story. Most agree the system is broken, but consensus lacks in how exactly to fix it. One example of how the system is broken involves Ceats Inc. They amassed many software patents regarding ticket selling software. However, last year a jury rejected the validity of their patents. The jury argued that prior art had already existed. Therefore there is a two-fold problem of A) The patent office ability to search for prior art or judge non-obviousness seems to be inadequate. B) If companies cannot rely on the validity of patents that have been issued, then ROE uncertainty is high and the possibility of getting sued by a patent troll would certainly deter large companies from entering into questionable markets….
This paper is written by my professor at the NCHU and I have prepared a PPT presentation and literature review. This paper was published in the journal Nature Biology which is the number one top ranked journal in the category of biology. This paper outlines a proposed method for calculating value of patents in the pharmaceutical industry. The method uses a stochastic Monte-Carlo simulation strategy to account for the uncertainty of life-cycle phase particular to the pharmaceutical industry. In reality, experts are needed to adjust the three main variables of reversion rate, volatility, and drift rate according to the specific conditions of the patent in question. This model of valuation could be useful in patent licensing and sales negotiations. If you have any further questions, please email me: email@example.com LINK TO THE PPT: https://dl.dropbox.com/u/45852891/Project%20Analysis%20-%20FINAL.pdf