Patent valuation is an essential aspect of the management of intellectual property rights, as it enables firms, investors, and policymakers to determine the economic worth of patented inventions. Since patents represent exclusive rights over technological innovations, their valuation involves both legal and economic considerations. Unlike tangible assets, patents are intangible and derive value from their potential to generate future economic benefits. Several widely accepted methods are used to assess the value of patents, each based on different assumptions, data availability, and valuation purposes. One of the most commonly used methods is the cost-based approach. This method determines the value of a patent by calculating the cost incurred in developing the invention. It includes research and development expenses, costs of experimentation, legal fees for patent filing and prosecution, and other associated expenditures. The underlying assumption is that a rational investor would not pay more for a patent than the cost required to recreate or replace it. This approach can be subdivided into historical cost and replacement cost methods. The historical cost method considers the actual expenses incurred in the past, while the replacement cost method estimates the current cost of developing a similar invention. Although simple and easy to apply, this method does not consider the future income-generating potential of the patent, making it less suitable for high-value or commercially successful patents. Another important method is the market-based approach, which determines the value of a patent by comparing it with similar patents that have been sold, licensed, or otherwise transferred in the market. This approach relies on the principle of substitution, where the value of an asset is inferred from comparable market transactions. It requires access to reliable data on comparable patent deals, including licensing fees, royalty rates, and transaction prices. The most common techniques under this approach include comparable uncontrolled transactions and industry royalty benchmarks. While this method reflects real market conditions and provides practical insights, it is often difficult to find truly comparable patents due to the unique nature of each invention. Additionally, confidentiality in licensing agreements limits the availability of relevant data. The income-based approach