Research On The Application Of Income Method In Patent Pledge Valuation

In recent years,patent pledge financing, as a new financing mode, opens a new channel for solving the small and medium-sized enterprise financing. However, the development of such a business is floundering in practice. And compared with the quantity and the role of patents, the development of that pattern is not satisfactory. The reason is that the evaluation value by pledge patent is hard to obtain. Namely, many difficulties exist during the patent pledge assessment. Patent is a kind of intangible asset whose preferred evaluation methods is income method. The issues that need to be resolved, is that how to evaluate the value of patent right of pledge, based on the basic principle of income method and the particularity of patent pledge evaluation.This essay includes seven parts. The first part puts forward the issue. The second part, defines evaluation objects and basic concepts, points out the basic principle of income method and the essence of patent pledge evaluation, and on this basis points out the relevant theories foundation of assessment. The third part, analyzes the particularity of patents as special evaluation objects in the special pledge evaluation purpose by contrast, and combined with special concerns of income method, summarizes and extended value influence factors and main risk points of income method applied in this evaluation. Under the particular purpose we should give special attention the profitability and cash flow conditions of be evaluated enterprise, namely, the first repayment ability of the be evaluated enterprise .The fourth part and the fifth part ,separately according to the influence factors and the risk points above, pointed out that how to consider and quantify influence factors and risk points, in the process of determining excess profits, the discount rate, the income period under the income method, meanwhile reflect the distinction of market value types and mortgage value types . In the determination of excess return we should not only consider its realizable ability, but also its realizable weight; In determining the discount rate of pledged patent evaluation two kind of methods are mentioned here. In the set of algorithms we need to give special attention to the specific risks of the enterprise and realizable risk. In the direct method we need to focus on the profitability risk and cash flow risk of the enterprise. In determining the earnings period we should give invention, utility model and appearance design different thought and method. The sixth part, through the application cases, specifically displays and reflects the ideas and methods how to determined of the above factors and related parameters. The seventh part, in view of the main research contents above, puts forward the research conclusion .The specific technical ideas and methods that are suitable for the application of income method mentioned above are of great significance for the obtaining of the patent pledge evaluation value and it has some guiding significance for such kind of assessment practice. It promotes the development of pledge financing for the small and medium-sized enterprise.