Intellectual Property Valuation Examples

What’s the Value of Intellectual Property?  February 10, 2012 – 03:22 pm

Valuations can’t be performed in a vacuum. Regardless of the type of property involved, a valuator’s conclusions depend on many factors, including the scope and context of the engagement, the standard and premise of value, the type of ownership interest, and applicable law.

These factors are particularly complex for intellectual property (IP) valuations. Why? Because an appraisal of IP assets may be required in a variety of contexts and involve different bundles of rights. And the value of IP can depend on applicable statutory law, which defines its useful life and establishes the owner’s rights to commercialize the property.

Purpose of the valuation

Value varies dramatically depending on a valuation’s purpose. An IP asset’s fair market value, for example, may be lower than its strategic value to a specific buyer who has the ability to maximize the asset’s earnings potential. And its fair value for purposes of Generally Accepted Accounting Principles (GAAP) may diverge widely from its value for transfer pricing purposes or in a litigation context.

Interest being valued

The bundle of legal rights that make up an IP asset can be divided in different ways, so it’s important for an appraiser to know what type of interest is being valued. Is it the entire “fee simple” interest? An interest in the entire bundle of rights for a limited time period? Or a license to use the IP? Is the license exclusive or nonexclusive, or is it limited to a particular use or geographic area? Is there an established market for similar IP assets?

Source: Business Valuation Insight | Chattanooga, Tennessee

Basic Books Invisible Advantage: How Intangibles are Driving Business Performance
Book (Basic Books)

You might also like:

Advisory Council on Alzheimers July Meeting (CCSC)
Advisory Council on Alzheimers July Meeting (CCSC)
Overcoming the Challenges of Young Entrepreneurship
Overcoming the Challenges of Young Entrepreneurship
Platos Republic (6 of 7)
Platos Republic (6 of 7)

Thank you part one

Thank you for taking my questions seriously. I appreciate your very "professional" response, including the quotes and the "[sic]" added to avoid any misquotes or errors on your own behalf. I can tell that you are an attorney. I can tell you are an Intellectual Property Atto...p all the lighter elements within and use them for fuel, while the heavier elements near by coalesce and form orbiting bodies. I know that there are anomalies, and I know that not every star system is necessarily like ours, but what I am hoping to find out here is why, specifically, we don’t believe that most stars have a distinct probability of having orbiting planetary bodies.

Isola and TUC Settle Patent Infringement Dispute  — MarketWatch
Isola continues to be firmly committed to protecting and enforcing its intellectual property rights. Licensing these patents to TUC demonstrates the strength of Isola's patents and technology leadership in the industry and our commitment to protect our ...

Corporate Lawyers: Necessity to your business  —
Most corporate lawyers are familiar with contract law, tax law, accounting, securities law, bankruptcy, intellectual property rights, licensing, zoning laws, and other regulations relating to a specific area of business. Corporate lawyers must be ...

Corporate law as a career  — Indian Colleges
Corporate lawyer also structure a business transaction legally, conduct research on contract law, tax law, bankruptcy, intellectual property rights, licensing relating to a specific area of business. Broadly speaking, corporate lawyers advise ...

Related posts:

  1. Intellectual Property Valuations
  2. Intellectual Property Valuation Services
  3. Intellectual Property Valuation example
  4. Intellectual property valuation