Commercial IP Valuation | Intangible Asset Valuation | Patent Valuation

What is Patent Valuation? How do I sell my Patent?

Patents have a significant effect on the valuation of a Business. The valuation of patents can be determined by various factors, such as the size and scope of the patent portfolio, the industry in which it operates, and the number of patents that are granted.

The value of a patent is typically calculated based on its royalty value or sell price. The royalty value is determined by multiplying the royalty rate with the net sales price per unit.

Intangible asset valuation is the process by which you assign a value to a company intangible asset. Intangible assets include brand recognition, goodwill, patents, trademarks, copyrights etc.

Khurana And Khurana Advocates And Ip Attorney’s one of the core practice area is commercial valuation as an independent intellectual property valuation firm. K&K follows stringent delivery practices which 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. K&K is a team of over 200 professionals spread across 10 offices (New Delhi, NCR, Pune, Mumbai, Indore, Hyderabad, Bangalore, Punjab, Chennai ) in India, and has strong rankings from Legal 500, MIP, IAM, Chambers, Asia IP, Global 100, Rsg, Niti Aayog, WIPR Leaders, Global Venture, ACQ5 among others.

Our Top IP Valuation & Intangible Assets Valuation Assignments

  • Defending a world-famous sports celebrity’s trademark and publicity rights in trademark infringement litigation.
  • For a worldwide software company, valuing the assets contained inside a group of online copyrighted graphic pieces for mediation.
  • In anticipation of a sale, valuing a database and a proprietary numbering and inventory system for an automotive manufacturer.
  • Valuing a big retailer’s software and IT assets in preparation for a sale and eventual auction as part of a business reorganization.

Our goal as intellectual property specialists is to find the most equitable, fair, and realistic method of calculating value. 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.

KHURANA AND KHURANA ADVOCATES AND IP ATTORNEYS is committed to assisting clients in establishing and growing the value of their intellectual property and intangible asset portfolio while reducing risk and ambiguity.

KHURANA AND KHURANA ADVOCATES AND IP ATTORNEYS professionals consider the various distinct valuation methodologies in light of the information available and the current situation when valuing intangible assets and intellectual property in order to determine the best method or methods of determining the intrinsic value of the subject assets in question. The following are the four widely acknowledged methodologies:

  1. The Market Strategy:  Intellectual property and intangible assets are appraised using this method by comparing the 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.
  2. The Cost Methodology: The cost of developing the asset in the past is sometimes utilised to determine its value. This strategy does not guarantee that the economic gain derived from owning and using the Subject IP will be realised. Rather, it gives the Subject IP an absolute minimum value.
  3. The Income Strategy: This strategy is focused on calculating the future income stream attributable to the asset in question. Because the information necessary is often quite accurate and readily available, this methodology is one of the most widely utilized methodologies in intangible asset appraisal.
  4. The Approach to Royalty Relief: The capitalized value of the royalties that the company is relieved from paying due to its ownership of the assets is used to determine the worth of the intellectual property. This strategy, like the Market Approach, uses royalty rates based on marketplace transactions and the Income Approach uses a revenue prediction.

Each approach has advantages and disadvantages that are determined by the data available on market factors such as previous results, industry trends, and the competitive climate, as well as the specific qualities of the asset(s) being valued and the extent to which they are utilized. Our certified 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, the 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 another significant asset that needs 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, the value of any other intellectual property 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

The expert team of Khurana and Khurana Advocates and IP Attorneys recognize that research is the cornerstone of every effective IP management approach. Our company offers one of the most comprehensive proprietary databases of licensing, value, and royalty rate data accessible. Corporations, economists, analysts, attorneys, and organizations rely on Khurana And Khurana Advocates and IP Attorneys 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 extra data points from public documents. We have the skills to create royalty rates internationally and the ability to determine them since we analyze royalty trends and monitor trademark values.

Our ApproachPatent Valuation  & Intangible Asset Valuation

IIPRD, in its commercial evaluation services, offers extensive global coverage and a broad technological range for your patent commerciality determination needs. We deliver an unbiased evaluation of your concept and intellectual property status. We work with your R&D/Legal team to determine your concept’s patent strategy and market strength.

IIPRD, conducts a comprehensive commercial evaluation of the concerned patent from i) Patentability/Freedom to Operate (if not a patentable subject matter) perspective and ii) Commercialization Potential perspective followed by a detailed report showing potential Licensees, SWOT analysis of the technology, main competitive products, and comprehensive comparison therewith, product/IP level comparison, industry behavior to in-licensing/buy of IP’s, among other commercial aspects that can help the Patentee to understand the underlying potential of the technology.

How We Serve

  • Determine R&D, Intellectual Property, and Patent Portfolio Strategies
  • Decide whether to pursue a specific IP strategy or submit a specific patent.
  • Protect and defend a patent or patent portfolio.
  • Save time and money by avoiding lawsuits.
  • Leverage a portfolio’s earning potential
  • Solve a market problem and meet revenue targets
  • Licensing or Sale of Patent holdings