WHAT IS THE RATIONALE OF CONDUCTING AN IP VALUATION?
You can have a valuation carried out on your IP assets because of one or more of the following objectives: transactions, litigations support, pricing, tax compliance and planning, strategizing, collateralization as well as financing or securitization.
WHAT FACTORS INFLUENCE THE VALUE OF IP?
There are nine main factors that influence the value of Intellectual Property: market share, emerging technologies, barriers to entry, remnant economic life, legal protection, growth projections, the IP’s profitability and economic and Industrial parameters as well.
Are there international standards applied in IP valuation?
- Yes. There are five main international standards:
- Uniform-Standards-of-Professional-Appraisal-Practice
- Financial-Accounting-Standards-Board
- International-Valuation-Standards-Committee
- International-Financial-Reporting-Standards
- US-Generally-Accepted-Accounting-Principles
WHAT ARE THE MAIN APPROACHES APPLIED IN THE ESTIMATION OF FAIR OR PRINCIPAL VALUE OF INTELLECTUAL PROPERTY?
There are five main approaches that are applied:
- Cost approach
- Pay off approach
- Market approach
- Direct approach
- Income approach
Cost Approach: Is essentially based on the substitution economic principle. According to the principle, the cost incurred by an investor in the acquisition of an asset should be equivalent to the cost of obtaining (through construction or purchase) of a substitute asset that has the same utility. The approach can be applied using the historical cost, replication cost, or replacement cost methods.
Market Approach: Has a basis on the equilibrium and competition economic principle. According to this principle, in a market that is free and unrestricted, the two forces of demand and supply usually determine an asset’s market price at the point of equilibrium.
Direct Approach: Has a basis on the prevailing share value of IP in the applicable Intellectual Property share market.
Income Approach: Estimates fair value of IP by discounting economic benefits of owing the IP in future at a recommended discounting rate.
WHY YOU SHOULD CONTACT BIZRIGHTS IP
The following are reasons why you should get in touch with us:
- If you need valuation of your Intellectual Property for purposes of making decisions or laying down strategies.
- If you are interested in understanding the worth of your brand for the objective of licensing.
- If you would like to understand how valuable your IP is in a transaction context.
- If there is need to understand the value of your Intellectual Property for onward communication to stakeholders such as shareholders, tax authorities, financiers, or prospective investors.
HOW BIZRIGHTS IP CAN SUPPORT YOU
We have a team of highly skilled and experienced Intellectual Property experts who can make use of recommended valuation principles and also use complex valuation methodologies to provide you with robust analysis that can help you in commercial negotiations, investment analysis, making important decisions, and solving legal disputes as well.
We have extensive experience and knowledge in the sector across a wide range of industries. For this reason, we are capable of working together with marketing, research, sales, and technical staff to gain and also provide you with in-depth insight in all matters regarding Intellectual Property valuation.