IP Valuation

IP valuation is the type of valuation where we determine the value of intellectual property assets. If you plan to buy, sell or license IP, you need to carry out an IP valuation.

Why you might need IP Valuation?

You might be selling IP rights in a licensing deal or setting transfer prices for an intercompany transaction.

How to do an IP Valuation for a Company?

There are many IP valuation methods for an interested IP valuation Company. These fall into three main categories:

  • • market-based
  • • cost-based
  • • income-based methods.

Market-based methods

Market-based IP valuation techniques decide an asset's worth by taking a look at the cost charged for comparable IP in transactions between irrelevant parties. Under this technique, it is critical to find information on IP or IP rights that are adequately equivalent to the IP being evaluated - specifically, guaranteeing that the financially important qualities of the transaction are practically identical. There are various assets you can use to find similar market data, including expert rates like Royalty Range.

Cost-based methods

Cost-based IP valuation strategies measure esteem by surveying the costs associated with making and fostering the IP. They take a gander at the costs caused by the business that raised the IP in doubt, as well as the costs of reproducing a comparative IP asset or item that utilizes the IP.

Income-based methods

Income-based IP valuation strategies base worth on the income the IP is supposed to produce from here on out. Otherwise called monetary advantage strategies, they distinguish the financial advantage that the IP is anticipated to bring to the association over the IP's valuable financial life.

Potential hurdles with IP valuation of a company.

Esteeming IP assets can be intricate, as there are a wide range of elements and highlights that can influence the worth of every IP asset. The worth of IP can change over the long run - for instance, as its standing in the market strengthens or diminishes, as the uniqueness of the IP changes, or as the strength of the IP protection develops or reduces. Accordingly, when you are taking a gander at the worth doled out to comparable assets in permitting arrangements between irrelevant gatherings, you really want to ensure that the information is adequately equivalent to the IP assets you're analysing.

Restrictions and specific features, such as:

  • • Restrictions on use, exploitation, reproduction, further transfer and further development
  • • Extent and duration of legal protection
  • • Life of a product
  • • Stage of development
  • • Rights to enhancements, revisions and updates
  • • Expectation of future benefits

Limitations, such as:

  • • Geographical scope
  • • Date of agreement
  • • Effective date
  • • Cessation date
  • • Terms (time period)
  • • Class of product limitation
  • • Exclusivity

Functions, risks, costs and assets, including:

  • • Research and development
  • • Quality control over functions performed
  • • Unsuccessful research and development
  • • Product obsolescence, technological advances of competitors
  • • Infringement and time consuming
  • • Product liability
  • • Provide compensation to other parties performing the functions
  • • Research and development costs
  • • Marketing costs

We, at PureValue Advisory Services, focus on extensive research and knowledge of the company, as well as the reason for its establishment.

We have advisors and consultants from every industry available to provide you with thoroughly researched subjective valuation and are set up to double-check and confirm every aspect of our own reports so that you can make an informed and dependable decision. We also assist with strategic business decisions; our valuation advisory team provides expert opinion and reports on the most recent market and economic trends. These decisions may be influenced by fund-raising, compliance, and tax considerations, as well as regulatory and reporting requirements.