The intellectual property portfolio of a company is an excellent source of potential value. In addition to the value an organization can achieve by using intellectual property in its own products and services to generate excess profits, intellectual property can also create value opportunities outside of a company. These strategies a company can [...]
Lognormal Distribution Of Asset Values When looking at large portfolios companies participating in the Gathering 1 network found that the value of patents was log normally distributed. Such a curve is shown in the “Lognormal Distribution Of Asset Values” figure. Further work showed that a typical unmanaged IP portfolio has: 1% of its [...]
Cost approaches are utilized under the premise that a prudent licensee would pay no more for the intellectual property at issue than the cost to obtain, either by purchaser by construction, an exact replica of the subject technology or an alternative that achieves the same function. Two types cost methodologies predominate: Reproduction cost [...]
Market approaches examine the terms of comparable technology transfers to arrive at a fair transfer price and terms for the intellectual asset under consideration. Arm’s-length transactions between nonaffiliated entities best cover the technology under evaluation. A host of related transactions within a limited price range provide strong evidence of what the market will [...]
Income approaches appraise the intellectual asset based on the value of the excess revenues or reduced costs that arise from use of the subject technology. Such approaches assign a price based on the level of extra or incremental benefit generated by the anticipated higher volumes, higher prices, or lower costs. Income approaches take [...]
Intellectual assets in its various forms (such as patents, copyrights, trademarks, trade secrets, and know-how) can contribute greatly to a company’s bottom line. In many business circumstances, it is essential to explicitly identify and record the value of such assets. Such circumstances arise in the context of a transaction such as sale/purchase, license/cross [...]
You must be logged in to post a comment.