Turning Intangible Ideas into Tangible Assets
Patent, design, and trademark rights transform intangible ideas into valuable business assets. Once registered, these rights can be transferred, commercialized, or used as collateral for loans. Furthermore, they play a crucial role in enhancing a company’s corporate value.
However, unlike other assets, patents and trademarks do not have a standard ‘market price.’ This is because they are unique intangible rights that exist globally as singular entities.
To accurately determine their value, a specialized IP valuation process is required—one that reflects the unique characteristics of intellectual property.
Step 1: Analysis of Technological Factors
We begin by analyzing the technological characteristics and industry trends relevant to the patent. This includes evaluating:
- The level of innovation
- Technological differentiation and potential substitutes
- The market impact and future prospects of the technology
This helps forecast how valuable and influential the technology may be.
Step 2: Analysis of Legal Rights
Next, we assess the validity and strength of the intellectual property rights. Unlike tangible assets, patents and trademarks can be declared void or invalidated under certain conditions.
Key considerations include:
- Patents: Valid for up to 20 years from the date of application
- Trademarks: Valid for 10 years from the date of registration, with renewal options
It’s also important to note that patent rights only apply to specific elements (‘added factors’) identified through prior art analysis, rather than everything described in the application. Determining the scope and stability of these rights is essential to understanding their true value.
Step 3: Analysis of Marketability
We then evaluate the marketability of the technology or trademark. This involves:
- Estimating potential sales and profits the technology could generate
- For trademarks, analyzing the brand’s reputation, market presence, and duration of use to determine its market value
Step 4: Valuation
Based on the findings from the previous steps, we use authorized valuation tools to calculate the final value of the patent or trademark rights.
Do You Need to Value Your IP Rights?
- Are you looking to report patent rights as assets to increase your corporate value?
- Do you need to transfer patents or trademarks registered under the CEO’s name to the company (or another entity) to reduce taxation risks?
If so, contact Sarang IP Law Firm today!
We provide customized IP valuations, ensuring a reliable and accurate assessment tailored to your needs. Let us help you maximize the potential of your intellectual property!