Abstract
Today, an increased need to value patents is expressed in several different situations. For example, Hi tech industries more frequently accept patents for further development and to catch up the market share. Our objective is to investigate the practical relevance of the existing valuation approaches in the context of patent evaluation and to point out crucial factors affecting the patent performance. The purpose of this thesis is to present an approach to evaluate the patent by using the TRIZ based tools and co relate it with the performance index When used properly, this approach will provide potential benefits to managers, such as understanding the current patent position of their company in the market, performing technological competitor monitoring and technological forecasting, leveraging the company’s decision-making process (where/when to invest), and creating effective defensive tactics. The first part of the paper will provide a description of the approach to patent by using TRIZ tools such as Functional Attribute Analysis to understand the product and break it into components, there functions and the relevant attributes along with the useful and the harmful factors. The second section provides an example of how best to evaluate the benefits from the above functional attribute analysis along with the financial implication and integrate them for performance analysis / index and also creating a threshold to qualify each patent by its performance value. Method such as Decision Tree Analysis is used to select the kind of market it can penetrate depending on the performance index value and valuation of patent thereof.