IIPRD has a deep focus on assisting customers in helping them evaluate their Patent Portfolios, either for a defined objective valuation of the Portfolio or a part thereof, for evaluating their portfolio as to whether it has a market fit, commercial relevance, right claim strength, appropriate monetization ability, and enforceability. Reports issued by IIPRD evaluate Patents from all these perspective and can help clients determine whether they should continue maintaining the patents, should self-commercialize the same or out-licensing/sell the IP, or should they adopt some other strategy to maintain and manage their IP Portfolios.
IIPRD, as part of its commercial evaluation services, offers extensive global coverage and a broad technological range for client’s patent commercialization requirements. IIPRD focuses on delivering an unbiased evaluation of the IP/Patent Portfolio, and work with Clients’ R&D/Legal teams to determine concept’s patent strategy, strength, enforceability, licenseability, and market relevance.
IIPRD is additionally and regularly engaged to conduct comprehensive commercial evaluation exercises for one or more patents of a portfolio with respect to the Patentability, Freedom to Operate, Infringement Analysis, potential infringement scenarios, and Commercialization Potential of the subject patent(s) followed by a detailed report showing potential licensees, SWOT analysis of the technology, key competing products, and comprehensive comparison therewith. The report additionally represents product/IP level comparison, industry behavior to in-licensing/buy of IP’s, among other commercial aspects that can help the Patentee to understand underlying potential of the technology.
What Is Patent Valuation? How Do I Sell My Patent?
Patents have a significant effect on the valuation of a Business. Valuation of patents can be determined by various factors, such as the size and scope/size/attributes of patent portfolio, industry in which it operates, licenseability of the subject matter in general, market size, contribution of patents to mapping product(s), among other parameters. Value of a patent is typically calculated based on its royalty value or sale price or the ability to generate revenue out of commercialization of the patent. Royalty value is determined by multiplying the royalty rate with the net sales price per unit.
Intangible asset valuation is the process by which one assigns a specific value or a range of values to an intangible asset that include brands, goodwill, patents, trademarks, copyrights etc.
IIPRD along with Khurana & Khurana has a core practice area in the domain of commercial valuation as an independent IP Valuation firm. K&K follows stringent delivery practices that are consistent and as per defined quality standards. K&K works closely with its sister concern IIPRD, both of which supplement each other in order to provide end-to-end IP Legal and Commercialization/Licensing services to over 3000 Corporates. IIPRD has a team of over 250 professionals spread across 10 offices (New Delhi, Noida, Pune, Mumbai, Indore, Hyderabad, Bangalore, Punjab, Chennai) in India along with an incorporated office in the US, and through Khurana & Khurana, has strong rankings from Legal 500, Managing IP, IAM, Chambers, Asia IP, Global 100, RSG, Niti Aayog, Assocham, WIPR Leaders, Global Venture, ACQ5 among others.
IIPRD has assisted Global Entities in the domain of Pharmaceuticals, Life Sciences, Engineering, Software, Semiconductors, among others to conduct Patent and IP Valuation exericises for their products, sub-features/modules, and brands. Our goal as IP Valuation Professionals is to find out the most equitable, fair, and realistic method of calculating objective value for a given IP. We concretely believe that value must be determined by market conditions, and that any valuation should reflect the current world and economic realities. In many businesses, it is also critical that valuation methodologies remain adaptable to quickly and consistently changing environments. IIPRD is committed to assisting clients in establishing and growing the value of their IP and Intangible Asset Portfolio while reducing risk and ambiguity.
IIPRD professionals consider various distinct valuation methodologies in light of the information available and the current situation when valuing intangible assets and IP in order to determine the best method or combination of methods for determining intrinsic value of the subject asset in question. The following are the four widely acknowledged methodologies:
- Market Strategy: Intellectual property and intangible assets are appraised using this method by comparing assets in question to recent deals involving similar assets in similar marketplaces. This strategy works best if there is an active market that can give multiple examples of recent arm’s-length transactions with sufficient terms and conditions.
- Cost Methodology: Cost of developing an asset in the past is sometimes utilised to determine its value. This strategy does not guarantee that economic gain derived from owning and using subject IP will be realised, and rather gives the subject IP an absolute minimum value.
- Income Strategy: This strategy is focused on calculating future income stream attributable to the asset in question. Because the information required is often quite accurate and relatively readily available, this methodology is one of the most widely utilized methodologies in intangible asset appraisal.
- Approach to Royalty Relief: Capitalized value of royalties that the company is relieved from paying due to its ownership of the assets is used to determine the worth of IP. This strategy, like the Market Approach, uses royalty rates based on marketplace transactions and Income Approach based on revenue projections.
Each approach has advantages and disadvantages that are determined based on data available on market factors such as previous/part revenue results/numbers, industry trends, and the competitive climate, as well as the specific quality of the asset(s) being valued and extent to which they are utilized. Our IP valuation professionals weigh all of these factors, as well as others, in order to decide the best analysis method to utilize in a given valuation scenario.
Intangible Assets & IP Estate Valuation And Planning
When it comes to estate planning or disbursement, value of one’s IP portfolio is a critical consideration that can have major tax ramifications. When valuing intangible assets for estate planning, we frequently discover that multiple categories of Intellectual Property, such as copyrights, patents, trademarks, and other creative works, add to the overall worth of the estate. Furthermore, there may be other significant assets that need to be identified for estate and tax planning purposes: the right of publicity.
The right of publicity is a property interest in a person’s identify that, unlike privacy rights, can be legally detached from that person. Importantly, post-mortem publicity rights exist and are protected in many places after a celebrity’s death. In estate valuation assignments for celebrity clients, value of any other IP in the estate is added to the value of the rights of publicity (e.g. trademark or copyright ownership).
Determination Of IP Royalty Rates – IP Valuation
Team at IIPRD recognizes that research is the cornerstone of every effective IP management approach. IIPRD offers one of the most comprehensive proprietary databases of licensing, valuation, and royalty rate data accessible. Corporations, economists, analysts, attorneys, and organizations rely on IIPRD for market-based statistics on royalty rates, values, and licensing conventions and practices.
Our research and data collection efforts have yielded over 13,000 transactions, making us one of the largest proprietary databases of licensing and value data available. There are also thousands of additional data points from public documents. We have the skills to determine royalty rates internationally and the ability to determine them since we analyze royalty trends and monitor trademark values.
How We Serve
- Determine R&D, Intellectual Property, and Patent Portfolio Strategies
- Decide whether to pursue a specific IP strategy or alter the same
- Undertake IP/Patent Commercial Evaluation and/or Valuation exercises
- Protect and defend a patent or patent portfolio
- Save time and money by avoiding lawsuits
- Leverage a portfolio’s earning potential
- Licensing or Sale of Patent holdings