Patent, design and trademark rights convert intangible ideas into tangible assets.
Registered patents or trademarks can be transferred/commercialized as a type of property right, and can be utilized as security loans. On top of this, patents or trademarks serve as a company’s asset factors of great importance in terms of corporate value.
However, its transfer price, mortgage price and asset value cannot be decided based on ‘market price,’ since patent or trademark is characterized as intangible asset and has only a single property right existing in the world, in contrast to any other assets.
Considering this, the value of patent or trademark rights is calculated through specific valuation process reflecting the characteristics of intellectual property rights.
Analysis of Technological Factor
First of all, the characteristics and trends of the technological sectors are investigated to analyze the level of corresponding technologies (differential, degree, substitutions, etc) and predict its availability and ripple effects.
Analysis of Right Factor
Next, considering the rights are patent or trademark rights, we have to decide on the validation of the right.
Unlike tangle assets such as real assets, patent or trademark rights can be void and null.
Also, Patent and trademark rights have a limit of duration to 20 years after its application, and 10 years after its registration (its renewal is possible, though), respectively.
Further, Patent right is not specified in all statements of a patent registered. The patent right is given to only ‘added factors’ secured through a broad prior art study.
In other words, the scope of rights ought to be decided.
Taking these factors into allowance, stability and scope of the right of the registered patents are analyzed and evaluated, in comparison to substantially operating patent technologies.
Analysis of Marketability
Then, the market trend of the corresponding technology is analyzed to earmark how much market value the technology can have, and to estimate sales and profits out of the technology, based on it.
In the case of trademark rights, the market value of the brand in consideration of the term of its use or the extent of its reputation is reflected.
Based on the analytic outcome, the final value pursuant to valuation is calculated.
Do you need to report patent rights as a company’s asset and raise the corporate value in financial terms?
Do you want to transfer patent or trademark rights that are registered under the name of the CEO, to the company for another entity, following legitimate procedures, in order to reduce taxation risks?
If you want, contact us, right now.
We’ll use the valuation tool authorized to provide an appropriate customized valuation.