What is the depreciation rate used for patents?

Depreciation is an accounting method of allocating the cost of a tangible or physical asset over its useful life or life expectancy. Patents are not depreciated they are usually amortized. The amortizaton rate depends on the specific patent and the useful life of the patent depending on the technology. The legal life of a patent is most often 20 year, but very few patents live that long so the useful life is usually shorter than 20 years.
Share this Post: