Patent Pricing Model Developed

Miscellaneous

from the how-much-is-that-patent-in-the-window? dept

If you’re a finance person, you probably know all about the Black-Scholes option pricing model. Now someone has realized that patents are similar to options, and has modified Black-Scholes for setting a present value price on patents. It’s definitely an interesting idea. However, I wonder how it takes into effect the influx of ridiculous business model patents that have been approved recently? Also, I wonder if it’s going to become the same crutch that Black-Scholes has become in the options world. So many people seem to rely on Black-Scholes and don’t bother to think through what they’re actually looking at.