Intellectual property refers to intangible assets such as logos, brand names, patents, trademarks, copyrights, and trade secrets, which are unique identifiers for a company or its products and services. The process of evaluating the economic value of these assets is called Intellectual Property valuation. Accurately valuing an intellectual property is crucial for determining a company's overall worth, as these assets are often its most valuable.
The holder or user of intellectual property should receive tangible financial benefits from its possession. This means that the property should have a quantifiable impact on the financial performance of the holder or user. Additionally, the existence of intellectual property should enhance the value of other related assets. This highlights the importance of considering the interplay between intellectual property and other assets when determining its value. Finally, it is important to have a clear understanding of the resources invested, such as time and expenses, in the development of the intellectual property. This information provides crucial context for accurately assessing the value of the property.
When performing an Intellectual Property valuation, the following variables must be considered:
The value of the intellectual property may be determined using both qualitative and quantitative methods.
To protect the developer from any potential rights violation, it is imperative to first get the IP valued. IP asset valuation helps in the enforcement of rights associated with intellectual property.
Future benefits - An IP asset's worth reflects the prospective financial gains that the IP owner or authorized user might derive from it in the future. The value may be derived by the sale or licensing of the IP to a third party, harnessing the IP by including it in the product, and certain other strategies such as increasing entry barriers or lessening the threat of substitutes.
Resurgent India Ltd., a Category 1 Merchant Banker, is one of the leading companies that provide the finest intelligent property valuation services. We have helped numerous firms get accurate intellectual property values with the help of our talent pool of over 200 skilled professionals. Every pertinent facet of a firm is thoroughly analyzed and critically evaluated as part of our intellectual property valuation services. We also provide our services in mergers and acquisitions, private equity, structured finance, capital markets solutions, transaction advisory, government advisory, enterprise risk, stressed asset resolution, fintech solutions and a few other areas.
