Intellectual property valuation - FM Consulting

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(055) 827 63 31
(012) 404 85 21
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(055) 827 63 31
(012) 404 85 21
Operative, Indecent, Accuracy !
Operative, Indecent, Accuracy !
(055) 827 63 31
(012) 404 85 21
Operative, Indecent, Accuracy !
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Intellectual property valuation

The evaluation of intellectual property (IP) is one of the many services provided by the FM Consulting valuation company to its clients. Such a task can characterize an object of intellectual property as a commodity, and its successful solution helps to obtain income from the exclusive right to own such a commodity. If the current value of these rights was correctly determined in the current market, they were formalized and documented, then intellectual property becomes a liquid asset of your organization.
Part IV article 1225 of the Civil Code of the Russian Federation categorizes the results of cogitative activities, which are classified as IP objects. So, based on this classification, this type of property can be divided into several varieties:
• Industrial property, which is usually classified as development patents and inventions, production specimens, service marks, commercial designations, integrated circuit topologies and other IP objects.
• Objects of copyright, which include various works of literature, music, painting and other arts.
• Software for computers and computers, summaries of information.
• Information that is a trade secret or know-how. This is information that relates to the financial, organizational or production sphere of the enterprise that brings or can be of use, the results of research and scientific work, as well as documentation not regulated by patents.
Intellectual property refers to intangible assets, and it plays a special role for high-tech enterprises, where its value has the largest share in the company's total value.
In our time, intellectual property is becoming a very important part of the organization's assets. In some situations, the current market price of intellectual property can far exceed the price of assets such as buildings, structures, equipment, vehicles, and so on. Such an asset of the organization determines its marketing decisions. This is most relevant for those organizations that have a well-established reputation, well-known names, brands.
The use of intellectual property in the circulation, created both within the organization itself and bought or leased outside its territory under a license, helps most effectively to optimize the base, which is subject to taxation. At the same time, all rights must be documented, an evaluation of intellectual property is necessary to put it on the balance sheet as one of the intangible assets.
Any benefits from the IP object can only be determined if it is directly applied in the company's work. Therefore, most often an assessment of intellectual property is necessary for those facilities, data and information about the purchase and sale of which are widely distributed in the free market. These include:
• Programs for computers and complex equipment on management;
• Service marks and trademarks;
• Inventions;
• Know-How.
The evaluation of intellectual property is carried out for certain transactions with it or individual rights thereto (for example, the right to use). Examples of these operations are:
• Alienation or sale of such an object in an open market.
• Introduction of an IP object into the authorized fund of the company.
• Transfer of rights to the object and lease to third parties for temporary use.
• Acceptance of the IP object as an inheritance (to calculate the amount of the fee to a notary).
• Registration of a license for the right to use the facility.
• Entering the ownership of the company's balance sheet.
• Transfer of the object to the bank as collateral for a loan.
• Determination of the value of property of an enterprise subject to taxation.
• Attraction of third parties for investment in the company.
• Calculate the amount of payment for the creators of the intangible asset.
Experts involved in the evaluation of intellectual property can face great difficulties, which are related to the lack of open information, using which, it would be possible to calculate the value of the object. Therefore, in the course of their work, FM Consulting's evaluators use one of the three described strategies:
• If the intangible asset is already used by the company to generate income, the intellectual property valuation will be based on information on its actual commercial effectiveness. Indicator for determining the effectiveness can be both the revenue received by the company as a result of direct use of IP, and the reduction of costs from the use of the object.
• In the event that the IP object is not currently operated by the company for profit, but in the future such operation is planned, the evaluation is conducted in the same way as in the previous paragraph. In this case, instead of real performance indicators, the evaluator will use the predictions obtained as a result of a detailed analysis of all factors. In addition, how accurately the market value of intellectual property will be determined may depend on the quality of the business plan for its operation.
• In the event that an intangible asset is not used by the company to generate revenue at the moment, and such use is not planned in the future, the cost of IP is determined by a cost approach. That is, the valuer as the current value of the object will consider the totality of costs that went into creating it.
• FM Consulting, an evaluation company, provides quality and professional services to determine the value of an intellectual property object. Based on the performed calculations, the specialists will execute the evaluation report, supplemented with detailed explanations and justifications. This document is official and has legal force.
FM CONSULTİNG
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