Step 3: Determining Ultimate Value Though quantitative tools provide evaluation/pricing starting point, they must be used in conjunction with careful evaluation of qualitative factors to ultimately determine fair market value. Those factors are instructive as to a fair split of excess benefits between the negotiating parties. As well, and the actual budget constrained, data run world, qualitative factors often are the real drivers between value and price some of the more common qualitative factors are shown in the Qualitative Factors in IP Valuation Figure.

Thus properly valued intellectual assets can add to the bottom line in both the licensor and licensee when intellectual assets are traded between two parties. Values are driven by the use to which the asset is put. Properly valued intellectual assets also improves the performance of corporations who use their value to determine the true cost of goods sold and contribution of innovation to profits.  When patents are asserted in litigation, Certified Patent Valuation Analyst materials point out that you must make the most powerful valuation argument possible in seeking patent damages. In this scenario, the basic tenets of patent infringement must be taken into account such as: The Georgia-Pacific Factors; The 25% Rule; Entire Market Value Rule; Running Royalty vs. Upfront Payments; Milestone Payments; Cost of Designing Around; Comparable Licenses; Market Spoilage; Convoy Sales; Provisional Damages; and Design Patent Damages.