IPEG delivers IP valuation services. About the various aspects of valuation, we posted numerous articles on the IPEG website. A selection.
The Correlation Between IP and Startup Valuations
The role that intellectual property (IP) plays in startup valuations is a critical issue for startups and investors alike. It can guide the IP strategy of a startup, as well as impact investment decisions and valuation considerations. This article aggregates (read more)
Valuation of IPR is a tricky business
“What’s the value of my IP” is a question that comes up in the mind of a lot of IP owners, enticed by news of lavishly priced IP rights, who would like to see if they can get their IP monetized in a similar lucrative way. For the companies that receive the question of whether they can evaluate the IP this is not always good news. “It depends” is mostly not a reply that is welcomed by a hopeful IP owner, who expects immediate enthusiasm by the valuator and a strong confirmation of his own ideas about how valuable his IP is (read more).
The valuation of IP & Trade Secrets
Any business professor will tell you that the value of companies has been shifting markedly from tangible assets, “bricks and mortar”, to intangible assets like intellectual property (IP) in recent years. IP in its various forms is increasingly used as the basis of many business and commercial transactions. It is fundamental for company valuations (merger, acquisition, bankruptcy); negotiations (selling or licensing); dispute resolution (fair recovery and quantification of damages); fundraising (bank loans and raising capital); assisting in decision making (corporate strategy); and reporting (tax and accounting) (read more).
Valuation of Intellectual Property: Moving Beyond the Paradox
Intellectual Property (IP) valuation is easily one of the most misunderstood topics surrounding the management of intangible assets. Over the last 20 years, we have seen the migration of IP valuation from being a tool for estimating IP damages into more “mainstream” applications, and with the explosive growth in IP transactions, the need for assigning a monetary value to IP assets is higher than ever. Having said that, inside the IP community there is a high degree of frustration expressed by all constituents when it relates to IP valuation: buyers, sellers, lawyers, consultants, etc. Much of the confusion and frustration around IP valuation stems from an interesting paradox (read more).
Patent Valuation Indicators
Patents contribute to a company’s results, revenue, stock performance and reputation – they are one of the most important strategic assets for R&D-intensive firms. Patents have been highly influencing firms’ value in different ways, being at the same time a sort of signalling device to consumers, competitors, venture capitalists or other investors. They are recognized as a monetary asset as valuable as a bond or currency by world trade regulation. This chapter is intended to review the various ways patents are used and valued today, to identify emerging trends and to outline areas where further research is needed (read more).
Intellectual Property Value in Startup Investments: A View from Silicon Valley
Intellectual property assets (IP Assets), primarily patents and software, have been the driving force behind high-tech companies, but oftentimes investors fail to understand their unique value as strategic business assets. Investors tend to focus on the defensive value of IP Assets, as it relates to protecting the company’s own products, but that is a very narrow point of view that entirely misses the full value of these assets for investors. This problem gets exacerbated as more and more startups turn to leverage their IP Assets for funding, as we are often seeing in our Silicon-Valley based IP valuation practice. In order to improve the IP valuation understanding and communications between startups and their investors, we have developed the Startup IP Valuation Model (read more).
Patent Valuations, Why do they Differ from Selling Price?
Owners and buyers are frequently out of sync w/ investors. Valuations that are either too high or low underscore the need to provide more bracketed price scenarios when it comes to selling a patent portfolio. The frequent disconnect between the seller, appraiser, and buyer suggests a more flexible approach might be needed that anticipates a variety of conditions, contexts, types of buyers, and possible deployments. Under the best of circumstances, providing an accurate patent valuation is difficult. Valuations typically are conducted for litigation purposes, licensing, taxes, and M&A (read more).
The Use of IP valuation in IP transactions, a Global Survey of IP Brokers
The valuation of intellectual property (IP) such as patents, or of non-patented technologies, is still considered by many to be more of an art than a science. While IP valuation might appear to be a routine task for a technology/patent broker, in fact most of the time it can be really difficult to value a patent or technology even for those who work with those assets on a regular basis. In this blog, we set out to explore the usage of standard valuation methods by IP brokers, with the hopes of shedding some light on why brokers rely or don’t rely on IP valuation methods in their transactions, and which valuation methods and/or tools are used the most. By “valuation” we refer to the process of attaching a monetary value to a patented or non-patented technology. It is therefore a quantitative assessment. Conversely, when we look at regulatory, technical, commercial and other hurdles that the technology may encounter before entering a market, we are making a qualitative assessment (read more).
Patent Valuation – We Can’t Get Enough Of It
Patent valuation, as a subject, is still “hot”. When in LinkedIn a question was posted on how to value IP[1] a large number of comments, suggestions and ideas appeared. The overall conclusion – it is fair to say – is that valuation is all about context. This might not be very helpful for those that seek a clear and universally applied method, but unfortunately in the absence of a functioning IP market, this is proven to be right many times over (read more).
IP Valuation – A Pandora’s Box
Two European trademark blogs, MarkenBlog and Class 46 referred to a publication in Germany’s business newspaper Handelsblatt on the effect of the proposed new “Bilanzrichtlinien modernisierungs gesetz” (Accounting Directives Modernizations Law). According to the two blogs this introduces new accounting rules for small and medium sized companies how and when to report development costs of their intellectual property on their corporate balance sheet. As we all know valuation of IP is always the biggest stumbling block in deals where patents are either sold, licensed or securitized. Most intangible assets generate premium returns (read more).
Waardering van intellectuele eigendomsrechten
Geen onderwerp staat zo vaak in de belangstelling als de vraag naar de waardering van rechten van intellectuele eigendom.
De opkomst van octrooiveilingen – in 2006 gestart door Ocean Tomo [1] in de VS – heeft in elk geval voor een lichtpuntje gezorgd in het zichtbaar maken van de waarde van een octrooi. Veel is er gezegd en geschreven over de betekenis van immateriële waarde (“intangibles”) van intellectuele eigendom en octrooien in het bijzonder. Zowel in de fiscaliteit als in economische verhandelingen wordt algemeen erkend dat octrooien als een “immaterieel” activum of goed moet worden behandeld (read more).
Download the IPEG Valuation flyer here.
In February 2016, IPEG consultant Severin de Wit gave a presentation for a Dutch Federation for Insolvency Lawyers on valuation. See the PREZI presentation here.
