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IP Valuation

Every IP asset, is an output of a Research and Development (R & D) activity. Thus, a price tag is to be attached to the IP assets, based upon the costs incurred to the Organization / individual involved in bringing out the IPR as a tangible output. To arrive at a meaningful value for exercising in an activity of licensing of the IP assets, one has to follow the techniques of IP Valuation. Normally, the Cost based approach is followed for IP valuation like costs involved to undertake the R & D project, like Input costs, material costs, cost of hiring of Scientific and technical personnel etc. and various other key parameters. Also, how long would the new product developed with established IPR  survive in the market is yet another question which depends on vagaries like market preferences, popularity etc. ( which are quite away from the purview of IPR, of course) From Bizrights IP, We can provide tailor made solutions for IP valuation so that you can feel the exact value of the IP assets before embarking on any exercise of commercialization of your IP assets so that the best you can get from the deal involving your IPR and also Due Diligence and FTO ( Freedom to operate Searches).

 

The building blocks of Intellectual Property valuation analysis comprises of four main elements:

  1. Purpose of conducting the exercise
  2. Standard (assumed buyer)
  3. Description of the asset
  4. Premise (how the asset is going to be used)

 

The four elements frame the valuation context and describe the focus, completeness, depth as well as general working parameters.

Valuation purpose is the principal usage of valuation analysis. It defines the regulatory and legal statutes, rules of thumb, court of resolution’s jurisdiction as well as acceptable methodologies.

 

There are six main reasons why Bizrights IP carries out IP valuation on behalf of interested clients. They include:

 

  • Transactional Strategy

We can value your Intellectual Property if you are considering purchasing, transferring, or selling it in an acquisition or licensing arrangement.

 

  • Taxation

IP valuation may be necessary for purposes of tax compliance and tax planning in case of charitable donations, inbuilt gains, license or sale of Intellectual Property across different tax jurisdictions, allocations of goodwill and taxable reorganizations.

 

  • Financial reporting

Bizrights IP can conduct IP valuation on your behalf if there’s need to present financial statements to a board of directors or shareholders of the company.

 

  • Securitization or financing

We can value your IP assets in case there’s need to borrow money from a financial institution against the Intellectual Property asset.

 

  • Litigation

Valuation may be carried out to calculate awards for damages in a lawsuit that involves infringement of IP rights.

 

  • Bankruptcy

In the unfortunate event that you need to file for bankruptcy or conduct corporate reorganization, IP assets will probably be the most valuable.