Option 4: Donation

The objectives of this approach are: to realize value from immature, underutilized or non-core assets, transfer maintenance fees and other costs of ownership to donee, further improvements required to commercialize intellectual property are avoided, and obtain income tax deduction for fair market value of intellectual property which may exceed value that could be achieved through sale or license.

The concerns of using this approach are: must obtain fair market valuation of intellectual property, all rights to intellectual property relinquished, must find nonprofit organization to accept the donation, and the fair market valuation and the donation are subject to review by the tax authorities.