Intellectual Property Valuation

 

INTELLECTUAL PROPERTY VALUATION

Intellectual Propetty Valuation is a crucial aspect of business today. Almost every business utilises or creates intellectual property in its everyday endeavours. In this highly competitive world it is essential  for a business to identify and protect its IP through Intellectual Property Valuation, so as to take full advantage and turn intangible assets into exclusive property rights. Once an IP audit has been conducted it is essential to protect the company's interest in these assets. There are several areas of protection available. These are:

 Patent

 Trade Mark

 Copyright

 Design

Valuing the commercial potential of Intellectual Property assets requires both an understanding of the scope of the IP and the business sector in which the assets could be exploited. The primary reason for Intellectual Property Valuations  is to maximise its value and therefore the value of the owner organisation through optimum management decisions.

The Australian Accounting standards Boards standard AASB 138 deals with the specific aspects for intangible assets. To meet the definition of an intangible asset, an asset must be identifiable to distinguish it from goodwill. To be identifiable the asset must be separable or arise from contractual or other legal rights. Separable means that the asset is capable of being separated from the organisation and is able to be sold, transferred, licensed, rented or exchanged, either individually or together with a related contract, asset or liability.

WHAT IS YOUR IP WORTH ?

The value of intellectual property (IP) is often not adequately appreciated and its potential for providing opportunities for future profit is widely underestimated by SMEs. However, when IP is legally protected and there is demand for the IP-protected products and/or services in the marketplace, IP can become a valuable business asset. •IP may generate an income for your SME through the licensing, sale, or commercialization of the IP-protected products or services that may significantly improve an enterprise’s market share or raise its profit margins.IP rights can enhance the value or worth of your SME in the eyes of investors and financing institutions. •In the event of a sale, merger or acquisition, IP assets may significantly raise the value of your enterprise, and at times may be the primary or only true assets of value.