Valuing Patents Is More Difficult than Rocket Science?
That’s what David Wanetick, Managing Director of IncreMental Advantage thinks, and he is in a position to know. In a recent article repeated in Business Week, Mr. Wanetick warns valuation analysts against a propensity to overvalue companies just because they own patents or have patents pending. His statistics are sobering and critical to the IP [...]
Manage IP for Greater Value
Late last year Michael Moberly, one of the IP-value arena’s thought leaders, wrote about management responsibility when it comes to creating and stewarding an organization’s IP value. He suggested almost every company has IP assets, and most of those assets would deliver some easy-to-ascertain value (revenue, competitive advantage, etc.) without much management intervention. It would stand [...]
Comparable third-party license agreements often aid in IP due diligence
During last week’s BVR webinar “Finding & Analyzing Royalty Rates” David Jarczyk informed listeners that the Uniloc/Microsoft ruling emphasizes the need for valuation practitioners to do their due diligence rather than relying on rules of thumb. “Appraisers will need to perform more stringent analysis and documentation to develop a position that can withstand the new [...]
ISO 10668 and brand valuations: a summary
By James P. Catty MA, CA·CBV, CPA/ABV, CVA, CFA, CFE In 2010, a major proprietary brand valuation service, BrandZ, ranked Google’s brand number one in the world, with a value of $114 billion. Interbrand, another highly respected brand valuation organization, put it only in fourth place, with a meager $44 billion. In light of those [...]
Replacing the “25 Percent Rule” with Fact-Based Evidence, Part 2
by David Jarczyk Yesterday we focused on using fact-based evidence for estimating a reasonable royalty rate. Today, let’s dig deeper into the factors that determine comparable transactions and where to find intangibles license agreements. After the appropriate intangibles have been identified and inventoried as the basis for matching comparable transactions, a pivotal next step is to [...]
Replacing the “25 Percent Rule” with Fact-based Evidence, Part 1
by David Jarczyk This two-part series explores new, defensible royalty rate search methods to replace the “25 Percent Rule.” Part one focuses on fact-based evidence. Until recently, common practice and legal precedent had established the 25 percent rule-of-thumb (the “25 Percent Rule”) as an acceptable approach to approximating reasonable royalty rates that licensees would be willing [...]
There Is a Lot at Stake for the NFL
In mid-February we predicted the National Football League and the players would reach an impasse, based on the owners’ willingness to renegotiate their royalty deal for IP rights licensed to Madden NFL. We now have an owner lockout of the players. Just last week we blogged about the emergence of the Justice Department in IP cases. Now comes [...]
LML Publicizes Results of a Successful Patent Protection Strategy
LML Patent Corp. Inc., a fully-owned U.S. subsidiary of Vancouver-based LML Payment Systems Inc., provides financial payment processing solutions for e-commerce and traditional businesses. It appears by all accounts they own U.S. Patent No. RE40220, Check Writing Point of Sale System, filed 6-12-2004, issued 4-8-2008, and assigned to LML Patent Corp. in the patent document. [...]
Prominent Patent Pooler Facing Department of Justice Inquiry?
It was only a matter of time before patent shops, patent poolers, patent holding companies faced antitrust scrutiny, though it’s difficult to assess why MPEG-LA executives should be losing any sleep this early in the game. MPEG-LA collects patents in the video sharing space and licenses those patents back to Apple, Microsoft, Adobe, etc. It [...]
The Mapping Wars Heat Up
Geo tagging is the process of adding geographical information to various media, including websites. It sounds relatively harmless, unless you spell it GeoTag, Inc., the proud owner of U.S. Patent No. 5930474, filed January 31, 1996, and granted July 27, 1999, with a broad, descriptive title “Internet organizer for accessing geographically and topically based information.” [...]
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