A case study: IPR value directly correlates to the ability to protect it
Nothing paints the picture of how the value of IP only exists and grows when the IP rights owner has the willingness (stomach) and wherewithal (resources) to protect those rights more than a case study of a small, undercapitalized inventor, as told last week in the LA Times. Larry Lockwood received patents in 1994 and [...]
The IP valuation challenge
The subject of IP valuation always livens up a conference, and this week’s Intellectual Property Business Conference in San Francisco is no exception. Marquera’s Andrew Ramer stated though there are many different perspectives on IP valuation, the challenge is there is little public data on transactions, therefore, one can only make guesses about IP’s value, [...]
How to select a method for valuing early stage technologies
IPVW attended an excellent presentation by Mike Pellegrino earlier this month. He gave a group of high-level, early-stage IP managers the benefit of his experience in choosing the proper valuation method. Business Purpose or Asset Type Recommended Valuation Method Technology License Royalty rate/profit split determination Capital Formation Integrated DCF and real option model Technology Acquisition Integrated DCF and [...]
Damodaran on valuing companies with intangible assets
In his recent blog post, “From revenues to earnings: Operating, financing and capital expenses,” Aswath Damodaran (Stern School of Business, NYU) opines about the accounting issues in Groupon’s recent S-1 statement such as R&D and customer acquisition costs. “I do know that there are valuation questions that will come up with the IPO, but talking about [...]
Early-stage valuation prompts active LinkedIn discussion
Dalius Budvytis (Delta Partners) recently wrote on the Business Valuation & Advisory Network group on LinkedIn: “I am valuing an early-stage venture using a DCF (cash flows to firm and cash flows to equity). The business turns cash-flow positive in year five, equity holders infuse money in the initial four years.” Budvytis finds two points [...]
NERA economists offer additional guidelines to valuing patents after Uniloc
The recent Uniloc U.S.A. v. Microsoft Corp. decision—in which the U.S. Court of Appeals for the Federal Circuit abolished the 25% rule of thumb in patent infringement cases—“reaffirms the need for case-specific analysis of reasonable royalty damages,” say David Blackburn and Svetla Tzenova (NERA Economic Consulting). “NERA economists have long been performing this type of case-specific analysis by [...]
U.S. Supreme Court agrees to look at patents of diagnostic tests
Monopolistic pricing power for makers of diagnostic tests has long been the concern of healthcare providers, and legal challenges have nipped at the heels of patent owners. In probably the largest profile case, the U.S. Court of Appeals for the Federal Circuit (CAFC) will issue its opinion on the Myriad dispute later this summer (Myriad is the owner [...]
Hallway and dais talk at IPBC is about the America Invents Act
In 2003, the Federal Trade Commission issued a report stating that to promote innovation, a proper balance of competition, patent law, and policy must be achieved. Consumers and innovators win when patents and competition policy are aligned. At the 2011 Intellectual Property Business Congress (IPBC) currently taking place in San Francisco, now retired Chief [...]
Stock index includes only companies most exploitive of their IP
With so much of an organization’s value tied to intangible property, it was only a matter of time before the move to recognizing and exploiting an organization’s IP became the sole critieria for inclusion in an investment portfolio. RocketCap IP stocks are limited to companies that derive essentially all of their sales through some form [...]
RIM again caught in litigation headlights
With the $600M check Research in Motion had to write to NTP in 2006 for patent infringement still smarting, RIM has been sued by Dolby in the U.S. and Germany for alleged infringement of patents covering digital audio compression technologies. In a press release issued late last week, Dolby stated, “All other major smart phone [...]
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