A review of IP valuation methodologies.

1. Intellectual Property: Valuation, Assessment and Audit Project Presentation Intellectual Property Management IIM Lucknow, Noida Campus

19. IP Value Chain Licensor Licensee Customer IP IP Royalty Revenue IP Market Product Market

21. All IP valuation methods derive from one of three approaches Deprival value Value $$$ Replacement cost Net realisable value Net present value/value in use Lower of Higher of Valuation methodology Market Cost Income (DCF)

27. Real Options Valuation

32. Relief from royalty: discounting projected royalty flows to a present value Range of royalty rates Taxation Incremental cash flows Discount rate Forecast revenues Other costs Present value

35. Excess return on capital Tangible Intangible Operating profits Cost of tangible assets and other resources Rate of Return x Brand Others Discount Rate Value x Example: the method used by Interbrand in its “Top 100 Brands” tables.

36. IP Risk and Damage Assessment

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