Intellectual Property Valuations

Independent appraisal of patents, copyrights, trademarks, and trade secrets for transactions, tax reporting, financial reporting, and litigation support.

Intellectual Property Valuations

Windeye Partners frequently works with companies and investors in the United States and internationally to appraise the value of intellectual property. Intellectual property can create value for its owner through revenue growth, cost savings, or blocking of competition — yet its valuation is generally even more challenging than the valuation of an operating business.

To discuss our intellectual property valuation services please email us at windeye@windeyepartners.com or contact Michael Guthammar on telephone (929) 223-2935.

Forms of Intellectual Property

Intellectual property consists of ideas and concepts that can be protected by law, primarily in one of the following forms. In addition, there are certain specialized forms such as right of publicity, trade dress, and domain names.

Patents
Copyrights
Trademarks
Trade Secrets
Domain Names
Right of Publicity
Trade Dress

Software is generally protected by copyright, but can also be patented in the U.S. if it meets specific criteria.

Purposes for IP Valuation

The need for an independent appraisal of intellectual property typically arises in one of the following situations:

  • Transaction pricing and structuring
  • Ownership transfers and tax reporting (such as transfers to foreign entities)
  • Financial reporting
  • Asset collateralization or securitization
  • Litigation related to infringement or theft

Valuation Methods

Windeye Partners applies the most appropriate methodology for each engagement, drawing from the three standard approaches to IP valuation:

Cost Approach

  • Replacement Cost Method
  • Reproduction Cost Method
  • Cost Avoidance Method

Market Approach

  • Comparable Royalty Rate Method
  • Comparable Transactions Method
  • Comparable Profit Margin Method

Income Approach

  • Relief From Royalty Method
  • Real Options Method
  • Technology Factor Method

The most commonly used method for patent valuation is the Relief From Royalty Method — where future revenues from the intellectual property are projected and the value of royalties, based on a comparable royalty rate, are discounted to a present value.

4IP Asset Types
5Valuation Purposes
500+Engagements
CVACertified Valuation Analyst

Ready to discuss your IP valuation needs?

Contact Windeye Partners to learn how we can assist you.