Equitable Distribution: Assets > US Patent

[Inventor2007]

What is the name of your state? Florida

Re: Equitable Distribution of Assets

How does the court estimate the value of a US patent?

Thank you.

 

[LdiJ]

What is the name of your state? Florida

Re: Equitable Distribution of Assets

How does the court estimate the value of a US patent?

Thank you.

Is the patent generating income?

 

[nextwife]

And was the patent filed during the marriage?

 

[Inventor2007]

We appreciate your responses.

No, the patent is not generating any income.

Yes, the patent was filed during the marriage.

 

[LdiJ]

We appreciate your responses.

No, the patent is not generating any income.

Yes, the patent was filed during the marriage.

Ok, explain better about the patent. Is there a reason to assume that it will have value in the future? Please be more explanatory. No one can help you unless they understand the situation fully.

 

[Inventor2007]

The patent is a business method patent issued by the USPTO in 2001. A consulting firm was able to secure one licensee in 2006; however, revenues were disappointing and the license agreement terminated in 2006. The firm has been unable to secure a new licensee and presently, the patent generates no income.

The patented process "stares in the face of 200 years of tradition" in a conservative industry, and presently, industry stakeholders indicate no interest in the process.

With respect to the future, the inventor remains optimistic.

 

[nextwife]

So it has never really generated any income?

It might in the future, or it may not?

 

[Inventor2007]

The license agreement in 2006 generated income via license fees; however, these license fees were minimal and the license agreement terminated on December 31, 2006.

Re: Equitable Distribution of Assets, State of Florida

How does the court estimate the value of a US patent in a divorce settlement?*

*The inventor incurred the costs to file the patent application, e.g., legal fees, etc.
*The license fees earned in 2006 are considerably less than the costs to file the patent application.

Thank you.

 

[Inventor2007]

Synopsis

Re: Divorce Settlement
State: Florida

How does the court estimate the value of a patent in a divorce settlement? Legal opinions? Appraisers?

The patent is a business method patent issued by the USPTO in 2001. Presently, the patent generates no revenues, and there are no license agreements currently in discussion or negotiation.

The patent may generate revenues in the future; although presently, there is no evidence to support that scenario.

Thank You

 

[LdiJ]

Synopsis

Re: Divorce Settlement
State: Florida

How does the court estimate the value of a patent in a divorce settlement? Legal opinions? Appraisers?

The patent is a business method patent issued by the USPTO in 2001. Presently, the patent generates no revenues, and there are no license agreements currently in discussion or negotiation.

The patent may generate revenues in the future; although presently, there is no evidence to support that scenario.

Thank You

That is a very very tough one and I am not sure how a judge would rule on that. My gut feeling would be that the sensible solution would be to assign each one of you 50% of the patent....so that you would share in any future earnings, but that no "value" be assigned to the patent at this time.

It would be difficult to come up with any other solution that would be fair. Its not fair to assign a value to it now, because there is no guarantee that is has any value. At the same time, it would not necessarily be fair to declare it valueless, because something could change any day.