Intangible Asset and Intellectual Property Valuation: A Multidisciplinary Perspective
Intellectual property (IP) and intangible asset (IA) issues abound throughout the business world, touching nearly all aspects of a company, from product development to human capital, and staff functions such as legal, accounting, finance to line operations such as R&D, marketing and general management. This wide diversity of IP applications and stakeholders is a leading contributor to the complexity of managing IP, as each field has its own legal, regulatory and practitioner history.
This paper highlights the importance of valuation context – why do we need a valuation? – and the importance of premise – what do we assume about the use of the intangible asset? – in determining the valuation game plan. We demonstrate how a small number of methods can be used to value IP across the range of issue areas and assess strengths, weakness, critical assumptions and practical applications of each.