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Monetary Patent Valuation · Quant IP

Kairos

100×
Cost reduction vs. traditional manual valuation
15–20
Seconds from input to auditable, IFRS-compliant report
35M+
Commercially relevant granted patents in scope

IP portfolios are among the most strategically significant assets companies hold, yet they remain among the hardest to value objectively. Kairos delivers a transparent, data-driven, fully automated valuation framework built on internationally recognized standards.

The Problem

Patent portfolios represent some of the most economically significant assets on corporate balance sheets, yet valuation remains ad hoc, expensive, and manual. Traditional reports take weeks, rely on internal company data, and cost six figures, accessible only in the context of the largest transactions.

The Asymmetry

Mandates default to established incumbents as a form of "reputational insurance" against liability for weakly-supported opinions. Performance-driven competition is absent because no provider has yet combined superior data depth with automated, reproducible execution, positioning brand over methodological rigor.

The Kairos Difference

Fundamentally data-driven execution of the license-analogy method: externally verifiable sources only, automated pipeline, per-patent precision. Continuous valuations, smaller portfolios, and ongoing advisory mandates become operationally and economically viable for the first time.

Valuation Framework

The Relief-from-Royalty Principle

The model determines the hypothetical royalty payments a company would be relieved from paying if it owns its IP outright rather than licensing it from a third party. These avoided future payments, projected over each patent's own remaining statutory life and discounted at risk-adjusted capital costs, represent the monetary value of the intellectual property asset.

100%
Externally verifiable data (no proprietary company disclosures required)
Per-Patent
Individual DCF horizon, quality score, and jurisdiction risk factor per family
IFRS · OECD
Compliant with IFRS standards and OECD Transfer Pricing Guidelines
Analytical Process

A Three-Stage Valuation Pipeline

Each valuation runs through three sequential, fully automated stages, from IP quality assessment through revenue attribution to financial discounting. The result is a mathematically rigorous, bottom-up asset value at the individual patent level.

1
Strength
Technological Validation & Asset Qualification

A purely quantitative fundamental analysis of IP quality and legal enforceability. The engine aggregates fully transparent, legally auditable indicators, combining historical and predicted forward citations, global jurisdiction coverage, and country-specific grant probabilities.

  • Proprietary ML-based Quant IP Quality Score trained on approximately three million annual patent examination proceedings
  • Predicts technological relevance and grant probability at the moment of first publication, before multi-year examination phases are complete
  • Enables valid quality assessment at an extremely early stage of the patent lifecycle
Early-stage signal: objective quality measurement before official granting decisions pre-empts years of examination opacity.
2
Mapping
Granular Revenue Allocation & Industry Mapping

Validated patent data is linked to the RBICS standard (Revere Business Industry Classification System), approximately 1,000 granular business categories, via semantic embedding similarity between patent text and segment descriptions. This enables precise attribution between IP families and the specific product revenues they protect.

  • Mathematical distribution algorithms identify the causal relationship between technology components and realized product revenues
  • Replaces traditional blanket IP-share estimates with robust, data-driven attribution
  • Works at full precision even for highly diversified technology conglomerates
True product-level attribution: cash flow generators identified by segment, not estimated at portfolio level.
3
Prognosis
Financial Discounting & Scenario Modeling

An integrated, automated DCF model computes the present value of technology-specific royalty streams. Financial validity is secured through real-time access to S&P Global datasets and current analyst consensus data. Each patent family's cash flows are discounted only over its own remaining statutory life.

  • Risk-adjusted WACC derived from CAPM, company leverage, and daily Treasury yields
  • Technology-specific obsolescence rates and patent-level enforcement risk factored into the discount structure
  • Per-lever sensitivity analysis (WACC, IP share, revenue growth) plus a Monte Carlo distribution of strength-weighting uncertainty (10,000 simulations)
Bottom-up per-patent DCF: each asset carries its own horizon, quality weight, and jurisdiction risk, not a portfolio-level average.

From Input to Report in 15–20 Seconds

Within 15 to 20 seconds, Kairos generates a standardized, authority-compliant valuation report. The highly granular bottom-up approach, combined with statistically grounded scenario analysis, provides a robust evidentiary foundation for any professional mandate.

Speed

Standardized, auditable report generated in 15–20 seconds. Up to 1,000× faster than traditional manual valuation, enabling continuous, recurring assessments at scale.

Compliance

Meets IFRS accounting standards and OECD Transfer Pricing Guidelines. Immediately auditable for accountants, tax authorities, and financial regulators.

Transparency

100% parameter disclosure. Every assumption fully documented. Per-lever sensitivity ranges and a Monte Carlo strength-weighting distribution provide a robust argumentative basis for any professional opinion.

Deliverables

PDF report per valuation run: portfolio overview with seven analysis charts and sensitivity ranges, or a per-patent breakdown with individual risk factor, strength score, and value attribution.

How it works

Portfolio Valuation
  1. 1 Search for a company
    Enter a name and select from results, or type an Entity ID directly (e.g. snp:…).
  2. 2 Calibrate parameters (optional)
    Override IP share, revenue growth, tax rate, ERP, or forecast risk premium.
  3. 3 Click "Run Portfolio Valuation"

Individual Patents
  1. 1 Search for a company
    Required. Provides the financial context (WACC, revenue) for discounting patent cash flows.
  2. 2 Enter UCIDs
    Format: CC-XXXXXXX-XX (e.g. US-8065161-B2). Comma- or newline-separated.
  3. 3 Calibrate parameters (optional)
  4. 4 Click "Run Patent Valuation"

Private / unlisted companies
Companies with no financials on file cannot be pulled from the database. Enter the figures under Model Overrides:
  • Revenue (LTM) (required): the Relief-from-Royalty base; without it the company cannot be valued.
  • WACC (optional): estimated from GICS4 peer companies; enter only to override.
  • Industry / GICS4 (optional): auto-classified from the patents; enter only to override.

Calibration Pool
Your explicit inputs always take precedence. Enabled: any parameter you leave blank is filled from a blended prior of stored user inputs, a community-calibrated baseline. Disabled: blank parameters fall back to Quant IP's industry datasets and benchmark estimates.

What you'll get
Portfolio: total IP value (USD), IP/Revenue, IP/MCap, IP/TEV, WACC, 7 analysis charts, PDF report
Patent Families: per-family value (USD), risk factor F, strength score, value chart, PDF report

Parameters

Type
Name, ISIN (e.g. US0378331005), website URL (e.g. samsung.com), or Entity ID (snp:…).
Point-in-time: all data (financials, patent ownership, publications, legal status, calibration inputs, market beta) is cut off at this date. Pick any date from 2002-01-31 to today.
Portfolio Valuation
Individual Patents

Model Overrides

Blanks are estimated automatically. For companies without financials on file (e.g. private firms), enter at least Revenue; WACC and Industry are otherwise estimated (peer median / classification).
Royalty rate on revenue (0–1). E.g. 0.08 = 8%.
Annual CAGR (decimal). E.g. 0.03 = 3%/year.
Effective rate (0–1). E.g. 0.21 = 21%.
ERP (decimal). E.g. 0.055 = 5.5%.
Patent uncertainty add-on (decimal). E.g. 0.02 = 2%.
Net sales LTM in USD. Required if no financials on file. Accepts suffixes: 8.4M, 8B, 8,4 M.
Discount rate (decimal). Blank → GICS4 peer-median.
4-digit GICS group. E.g. 4510 = Software.
Equity value in USD. Enables IP/MCap ratio. Accepts suffixes: 8.4M, 8B, 8,4 M.
Your inputs always take precedence. Enabled: blank parameters are filled from community-calibrated priors. Disabled: blanks fall back to Quant IP's industry datasets and estimates.
Running valuation. This may take several minutes for large portfolios…

Patent Identifiers

Comma- or newline-separated patent publication numbers.
Format: CC-NUMBER-KIND (e.g. US-8065161-B2). Separators (spaces, slashes) are normalised automatically.

Model Overrides

Blanks are estimated automatically. For companies without financials on file (e.g. private firms), enter at least Revenue; WACC and Industry are otherwise estimated (peer median / classification).
Royalty rate on revenue (0–1). E.g. 0.08 = 8%.
Annual CAGR (decimal). E.g. 0.03 = 3%/year.
Effective rate (0–1). E.g. 0.21 = 21%.
ERP (decimal). E.g. 0.055 = 5.5%.
Patent uncertainty add-on (decimal). E.g. 0.02 = 2%.
Net sales LTM in USD. Required if no financials on file. Accepts suffixes: 8.4M, 8B, 8,4 M.
Discount rate (decimal). Blank → GICS4 peer-median.
4-digit GICS group. E.g. 4510 = Software.
Equity value in USD. Enables IP/MCap ratio. Accepts suffixes: 8.4M, 8B, 8,4 M.
Your inputs always take precedence. Enabled: blank parameters are filled from community-calibrated priors. Disabled: blanks fall back to Quant IP's industry datasets and estimates.
Running valuation. This may take several minutes…
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