Intellectual Property Valuation Services
Want to conduct IP valuation? Understand the Benefits and Methods
When
it comes to the purchase and sale of a company, some intangible assets, for
example, intellectual properties (IP) and goodwill, can be the most crucial
factor to consider. As per the experts, IP assets are considered as a part of
the business’s non-physical property. These properties are legally protected.
Any decision regarding the IP can only be taken in a court of law. They have an
economic value, are transferrable, and can be independently identified.
You
can’t determine the actual value of your business without considering
intellectual properties. So, it can be said that accurate assessment of your IP
can play an important role in witnessing a profitable sale. So, how to evaluate
the true value of your intellectual property? Well, this is where you can take the
help of a professional intellectual property consultant.
Intellectual
property consultant- Helping you in IP valuation
There is no doubt that intellectual property is much more than just new patents and inventions. In order to enable and realize various income sources, your company’s IT portfolio should be properly valued and managed to safeguard the IP, and you can enjoy a competitive advantage.
By
choosing the best intellectual property consultant, you can build as
well as strengthen the IP monetization efforts. The experts have years of
experience in this, and they can evaluate the value of the patent, copyright,
trademark, patents, brands, trade dress, domain names, and other intellectual
properties.
What
do you mean by intellectual property valuation?
IP
valuation is a critical process that becomes very important during the purchase
or sale of an organization or in the event of a merger, acquisition, and
solvency. In general, the intangible assets of a business are either patentable
products, or they are patented. IP is considered a unique innovation of a
company and can bring a lot of profits to a company.
By
conducting a proper IP valuation, hiring intellectual property valuation
services, you can come up with a good value of your IP, and this can
greatly influence and selling or buying price of the organization. In simple
words, through IP valuation, you can easily attain a justifiable selling price.
Why
should you hire a good IP valuation firm?
Understanding
the true worth of your intellectual property is crucial to knowing the transfer,
licensing, and the sale price of your IP assets. But you should understand that the
process of valuation is quite complicated and can be greatly influenced by the
changing rules of IP valuation. As this is a specialized area, the highly
experienced intellectual property consultant can only help you in this.
All
the businesses invest heavily to create IP, and you can’t take any risk of
making a loss due to improper valuation of the IP. So, such experts play a
major role here. They properly understand the changing regulations and factors
related to intellectual property, and they closely analyze the true value of
the IP so that you can always be in profit.
Some
commonly used IP valuation methods
1. Income
method
It
is one of the common IP valuation methods, and here the valuation is conducted
considering the present-day value of the IP. The experts will evaluate how much
value does IP can generate in the future. If your IP assets have a better cash
flow and the expected revenue can be projected accurately, then you can apply
this method.
2. Cost
method
Under
this method, the valuation is carried out by computing the cost of similar
assets. If the assets can be reproduced easily and the IP’s economic value
can’t be quantified easily, then you can go for this valuation method. This
method is a little simple as it will be based on defined or direct cost.
3. Market
method
Here,
for the base to evaluate the value, the experts will consider the current
market behavior. The IP is valued by benchmarking the value against a similar
asset sold under some similar situations in the marketplace. One of the major
benefits of using this method is you may generate a better comparable valuation
to the other assets.
Well,
no matter what is the method, the IP valuation process requires obtaining
sufficient information about the IP and sufficient knowledge of the industry
and economy. That’s why it is advisable to hire a trusted intellectual
property consultant of CONSOR. The company deals with licensing strategies,
intellectual property valuation, litigation support, and more. Visit http://consor.com/
to know more.
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