IP valuation

As intangible assets, IP rights are difficult to value. We use quantitative methods to estimate the financial and technological value of IP rights. Our focus is thereby on patents and trademarks.

The reasons for the valuation of IP rights are manifold and include, amongst others:
 

• IP valuation for start-up financing and start-up acquisition
  
• Technology transfer between universities and industry
  
• Monitoring and making visible your own innovation output internally and externally
  
• Determination of license fees
• Reporting of IP rights as intangible assets in external (financial and non-financial) reporting
  

Objective, comprehensible, replicable and transparent approach to IP valuation

Market-based, cost-based and cash flow-based valuation methods

Own empirical research on the valuation of IP rights and use of IP methods

Use of AI methods for the evaluation of IP rights

Both financial and technological valuation of patents

Financial valuation of patents

The financial value of patents is difficult to determine. Market prices for the purchase or sale of patents and license fees are generally not publicly available. At the same time, patents are indispensable for many products and business models. In some industries, little is possible without patents. Empirical research shows that the financial value of patents is very skewed. This means that a very small number of patents are very valuable, while most patents are worth very little. Empirical research also shows that financially valuable patents have certain characteristics (e.g. many forward citations, large number and breadth of technology classes, size of patent family). We use patent and especially patent citation data to at least approximately determine the financial value of a patent. In addition to the empirical determination of the patent value based on patent characteristics, we also calculate the value of patents (where possible) using the standard market-based, cost-based and cash flow-based valuation methods.

Financial valuation of trademarks

The application or registration of a trademark protects the trademark owner from imitation and misuse of his trademark by other companies. Such registered trademarks are intangible assets and can have a high financial value. Based on research into the financial value of trademarks, we determine the value of trademarks on the basis of certain trademark characteristics. In doing so, we draw on both marketing and innovation research. We have made a significant contribution to the latter reserach stream ourselves (see publications).

Technological valuation of patents

From a technological perspective, patents can protect both incremental and radical innovations. The latter are also referred to as technological breakthrough innovations. We use patent and patent citation indicators to determine the technological value, technological novelty and technological maturity of a patent and the technology behind it. We also use AI-supported methods (in particular natural language processing) for this purpose. The aim is a technological evaluation of the patents or innovations of a company, start-up, university or research institution. Corresponding analyses at regional, industry or country level are also possible.

Monitoring of innovation output

Companies, universities and research institutions want to report their own innovation output both internally and externally. We will be happy to advise you on how IP-related performance indicators can be determined and integrated into an innovation monitoring system.