Intellectual property (IP) is considered to be the main generator of value in many industries today. Companies are highly dependent on their IP in order to maintain a competitive advantage and to guarantee future profitability. The commercial value of IP has grown, and companies might in fact possess property that is the most valuable part of the enterprise without knowing it. A shift from capital resources to IP has taken place when it comes to the foundation of commercial power. It can also be argued that the definition of capital resources has shifted. Cash-filled balance sheets and enormous manufacturing plants are no longer associated with the term capital resources. Instead, IP is considered to be the dominating capital resource.
Purpose: Our objective is to investigate the practical relevance of four theoretical valuation approaches in the context of patent valuation and to point out crucial factors affecting the choice of valuation approach.
Contents
1 INTRODUCTION
1.1 BACKGROUND
1.2 PROBLEM DISCUSSION
1.3 PURPOSE
1.4 DISPOSITION
2 RESEARCH METHOD
2.1 THE SCIENTIFIC POINT OF DEPARTURE
2.2 RESEARCH PROCESS
2.3 RESEARCH METHOD
2.3.1 Information collection
2.3.2 Conducting the Interviews
2.4 METHOD DISCUSSION
2.4.1 Representation and generalization
3 FRAME OF REFERENCE
3.1 INTANGIBLE ASSETS AND INTELLECTUAL PROPERTY
3.2 PATENTS
3.3 VALUE
3.4 VALUATION APPROACHES
3.4.1 Cost Approach
3.4.2 Market Approach
3.4.3 Income Approach
3.4.3.1 Discounted Cash-flow
3.4.3.2 Relief from Royalty
3.4.3.3 Decision Tree Analysis
3.4.4 Real options approach
3.4.4.1 The Binomial Model28
3.4.4.2 The Black & Scholes model
4 EMPIRICAL STUDY
4.1 GENERAL VIEWS ON VALUATION OF PATENTS
4.1.1 Öhrlings PriceWaterhouseCoopers
4.1.2 KPMG
4.1.3 Ernst & Young
4.1.4 Deloitte & Touche
4.1.5 AdviceIPR
4.2 METHODS OF VALUATION
4.2.1 Öhrlings PriceWaterhouseCoopers
4.2.2 KPMG
4.2.3 Ernst & Young
4.2.4 Deloitte & Touche
4.2.5 AdviceIPR
4.3 CRUCIAL FACTORS AFFECTING CURRENT PRACTICE
4.3.1 Öhrlings PriceWaterhouseCoopers
4.3.2 KPMG
4.3.3 Ernst & Young
4.3.4 Deloitte & Touche
4.3.5 AdviceIPR
5 ANALYSIS
5.1 THE VALUE OF PATENTS
5.2 COST APPROACH
5.3 MARKET APPROACH
5.4 INCOME APPROACH
5.4.1 Discounted Cash-flow
5.4.2 Relief from Royalty
5.4.3 Decision Tree Analysis
5.5 OPTION BASED APPROACH
5.5.1 Binomial method
5.5.2 The Black & Scholes model
6 CONCLUSIONS
7 FINAL DISCUSSION
8 TABLE OF REFERENCES
8.1 BOOKS
8.2 ARTICLES
8.3 INTERVIEWS
8.4 INTERNET RESOURCES
APPENDIX I
APPENDIX II
Author: Boman, Anna,Larsson, Jonas
Source: Linköping University
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