  This study uses patent renewal information to estimate private value of
patents by technology and ownership status. Patent value refers to the economic
reward that the inventor extracts from the patent by making, using or selling
an invention. Thus, we measure the value of patent right (private value of
patent) from the patentee perspective. Our empirical analysis comprises of 555
patents with application year during 1999 to 2002. The term of these patents
either ended in 2018 or lapsed due to non-payment of renewal fee. We model
renewal decision of patentee as ordered probit where patent renewal fee
increases with the age of patent. Variables such as patent family size,
technological scope, number of inventors and grant lag are used as explanatory
variables in the corresponding regression. Hence, this paper combines the
patentee renewal decision along with patents characteristics and renewal cost
schedule to estimate the initial rent distribution. We find that a large number
of patents expire at an early stage leaving few patents with high value
corroborating the results of studies using European, American and Chinese data.
As expected, certain technology class patents enjoy high valuation.

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