How to Value Intellectual Property
Intellectual Property Consultants generally have a choice between four valuation methodologies when establishing a fair market value for intellectual property. Depending on the information available and the situational context, different valuation methodologies are used. An expert intellectual property consultant will be able to analyze the strengths and weaknesses of each method depending on market factors, such as historical results, industry trends, and the competitive environment, as well as the specific characteristics of the asset(s) being valued and the degree to which they are being exploited. Intellectual Property Valuation Methodologies Below, are the four generally accepted Intellectual Property Valuation methodologies: Market Approach This approach is dependent on observable and comparable market transactions. Intellectual property is valued by comparing the assets in question to transactions involving similar assets in similar markets. This comparison prov...