What is IP Valuation and how to do it?
Intellectual Property valuation can help you determine the true value of your business and capitalize on assets that you may not have been aware of possessing. There is seldom a non-linear relationship between the cost of creating IP and its value. It possesses high risk of wasted investment but it can be counter balanced by the high potential that IP assets hold if they are commercialized.
The value of an IP is a monetary compensation that is expected to be received from licensing of an IP or from sale or exchange of other intangible assets.
There are mainly three methods of valuation of IP.
- cost based method
- market based method
- economic based method
What is IP Commercialization and how to do it?
The worth of an IP asset lies in the commercialization of such asset and not necessarily in creation. Mergers and acquisitions origin because of the expertise, the intellectual property rights reserved by the big entities, which is a dominance of IP in the industry.
Commercialization of IP helps to bring in investments. It is necessary for a company to realize the importance of such asset and commercialize the IP assets in time and reap the fruits of their own creations since this is one of the most powerful assets for an entity which escalates the bright future of a business entity. Consequently, commercialisation of intellectual property is a necessary activity as it allows the business entity or the creator to seek his/her share from the people or society in exchange for access to their creations to the people at a wider level.
In order to license your IP assets, it is a prerequisite to have a strategy for the maximum benefit of the owner of the holder of IP assets. By licensing, the creator can generate a much-needed revenue which can be further used for the creation, development and production of new IP assets. Considering the benefit from a marketing angle, the licensor has benefits of expanding his/her reach across the world and markets. If we consider a strategic angle while licensing an IP asset, the licensor will save the cost of production, distribution channel, marketing and other associated expenditures, which would otherwise be a heavy load. Licensing provides for the benefit of originating futuristic strategic relationships among the licensors and the licensee which may further provide scope for greater licensing partnerships.
At iVakil IP, we offer client to
Valuation of assets based on the validity, commercial relevance and usable life of an IP right using legal, financial, accounting and technical skill sets.
We also facilitate acquisitions and sales of IP portfolios using our vast network of strategic investors.