Valuation of IP assets is critical when engaging in partnerships, mergers and acquisitions, licensing, transfer, abandonment, and infringement settlements. Working with a partner that specializes in financial valuations, TechSys Insights provides both a technical assessment of the specific feature to the overall success of the product along with a monetary assessment of the feature throughout its economic lifetime. Some of the criteria used for valuations include:

  • Remaining economic life of IP
  • Comparable market analysis if available
  • Emerging technologies and competitive solutions
  • Potential market share of licensees
  • Review of the capital investments to develop or replace IP
  • Review of present value of cash inflows from the IP if available
  • Income Analysis to determine the historical and future revenue potential of IP
  • Discount rate analysis

One of the major challenges with IP valuation is that no one method alone will always give a good approximation of the value of a piece of Intellectual Property. However, looking at IP from different perspectives does enable a more focused judgment on the more critical aspects of that particular case; allowing a more informed decision.