INTELLECTUAL PROPERTY VALUATION Definition of Intellectual Property
Intellectual Property: A part of Intangible Assets which means a non monetary asset that manifests itself by its economic properties. It does not have physical substances but grants rights and privileges to its owner that usually generate income.
The term Intellectual Property refers to patents, trademarks, copyrights, and trade secrets or know-how.
This is a special classification of intangible assets and is unique because the owner of intellectual property (IP) is protected by law from unauthorized exploitation of it by others.
A business enterprise that owns IP can either internally utilize its benefits or transfer interests in the property to others who will exploit it.
Types of Intellectual Property An intellectual property can be either identifiable or unidentifiable.
Marketing-Related Intangible Assets
Customer-Related Intangible Assets
Artistic Related Intangible Assets
Contract-Based Intangible Assets
Technology-Based Intangible Assets
Basis of Intellectual Property Valuation
Market Value Basis of Valuation
Other than Market Value
Purposes of Intellectual Property Valuation
Licensing
Collateral-Based Financing
Accounting Requirement
Litigation
Financial Reporting
Intercompany Transaction
Strategic Alliances
Infringement Damages
Bankruptcy
Economics Damages
Valuation Approaches and Methods All intellectual property valuation methods fall within one of the three valuation approaches.
