In the January 2016 issue of Financier Worldwide, Dr. Alan Cox describes a method for the valuation of patents using patent citations, a technique that is widely used in industry, academia, and increasingly in patent litigation. The method builds on an extensive academic literature that finds that more valuable patents tend to be cited more frequently by later patents than is the case for less valuable patents. Applying the method requires controlling for factors such as patent age and technology and other characteristics that should be taken into account to make the valuation consistent among patents. The method can also require the analysis of a considerable amount of data. NERA has developed considerable expertise in processing large patent databases and the application of the methodology. We have, for instance, developed methods to predict the number of citations over the patent’s lifetime for patents that have been issued relatively recently.