OWC Pharmaceutical Research Corp (OWCP)

[bybtrader]

If you know this much, explain how a company can value a patent. Say for example, OWCP has a utility patent for psoriasis cream, how are they going to value it? Is it worth a million, 10 million, or a billion?

Since companies would randomly assign values basic accounting principles do not allow patents to be on the balance sheet.

There are only two conditions where patents can be filed as assets. First example if OWCP acquires someone else's patent, say for a million, then they can claim that patent as an asset. The second example is getting an offer for your patent. If company X offers OWCP to buy their asset for a million, OWCP then can say my patent is worth a million and put it on the balance sheet.

For all other scenarios, companies CANNOT claim patents as assets. It is this simple!