The financial evaluation of titles to intellectual property intervenes in many contexts, in particular in the case of raising funds, a capital contribution, divestiture or technology transfer and the analysis of damages and interests involved in a dispute.
It is necessary to know the value of rights to intellectual property in order to:
- Optimize the portfolio of rights to IP in terms of financial data, in line with the business strategy of the company.
- Negotiate the value of the licence, the sale or the purchase of rights to IP.
- Clarify the contribution to the rights to IP of each party in the case of partnership projects.
- Facilitate financial operations by giving value to these immaterial assets.
- Bring patents in exchange for company shares, in the case of a capital increase.
- Prepare for the upcoming introduction of the tax system the «Patent Box» which allows the deduction of a company’s patent revenues; but which requires an accounting recognition of patents.
So it is crucial to consult a specialist in patent law, capable of estimating the qualitative value of the IP portfolio and to rely on recognized skills in the evaluation and financing of innovative projects, in order to evaluate in a reliable and transparent manner these intellectual property assets, in sharp progression in technology and industrial-based companies.
This kind of transdisciplinary analysis involves taking into account both the quality and the degree of protection conferred by the patent’s claims, the detailed legal status of the family of patents, the freedom to operate of the patented item, a critical analysis of the economic potential (business plan), as well as an independent analysis of the associated risks relating to the evaluation of the patents in question, depending on the context, the experience and the company’s resources. These various elements will then determine the valuation strategy and the most suitable methods for estimating, similar to methods used for evaluating companies.