Abstract: In the past decades, China had become the biggest countries on annual patent application, and further improve the patent quality also becomes one of key issues for strategic management, innovation management and public policy etc. To further measure the relationships between patent quality and firm’s market value, the indicators for patent quality are overviewed and refined to form a novel framework, which can protrude the hidden relevance. Beside the hypotheses and theoretical model for measuring the latent relations between patent quality and Tobin’s q value, an empirical case on China’s telecommunication device industry is conducted to illustrate the theoretical inferences, and over 40 thousand open patents and more than 20 thousand authorized patents are involved. Based on the reasoning and empirical analysis, some new conclusions and possible implications for policy-making and strategy of intellectual property are discussed.