"Intellectual property is often one of the most valuable assets a business owns, but it is also one of the easiest to overlook. Patents, trade marks, software, designs, copyright, proprietary processes, technical know-how, trade secrets and brand value can all carry commercial value, even when they are not clearly shown on a balance sheet."
"This becomes especially important before a business raises investment, enters insolvency, prepares for sale or negotiates with lenders, shareholders or buyers. At these moments, assumptions are not enough. Stakeholders need a clear view of what the company owns, how those assets create value and whether that value can be explained in a credible way."
"Intellectual property valuation is the process of estimating the economic value of IP assets owned, controlled or used by a business. This can include registered rights such as patents, trade marks and designs, as well as unregistered assets such as copyright, software code, databases, technical documentation, confidential information and know-how."
"The UK Government explains that IP can be valued using recognised approaches such as the cost method, market value method and income or economic benefit method in its guidance on valuing intellectual property. The correct method depends on the asset, the evidence available and the reason the valuation is being prepared."
Intellectual property can be among the most valuable business assets while remaining overlooked because it may not appear clearly on financial statements. Patents, trade marks, software, designs, copyright, proprietary processes, technical know-how, trade secrets, and brand value can all create commercial value. The need for clarity increases before investment, insolvency, sale, or negotiations with lenders, shareholders, or buyers. Stakeholders require a clear view of what the company owns, how those assets generate value, and whether the value can be explained credibly. Intellectual property valuation estimates economic value of registered and unregistered IP, using cost, market, and income or economic benefit approaches depending on the asset and evidence. The resulting value can affect negotiations, strategy, disputes, licensing, and litigation support.
Read at London Business News | Londonlovesbusiness.com
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