Thorough and informed IP due diligence is essential in middle market M&A
Two calculations are crucial when valuing IP for an investor: Rate of return: An investor puts up money and expects a return. Because some investments fail, and others just plod on, investors must a get high enough return on the successful projects to compensate for the losers. Holding period: The longer the holding period, the [...]
Some numbers can now be put to some of the “Tavern on the Green” IP value
As discussed in this blog, the real value of bankrupt New York City restaurant Tavern on the Green was in its IP. The trademark was conceived as having two subsets: use in NY, CT, NJ and PA as a restaurant, and use outside of the tri-state area and use for other purposes. Now a value [...]
In the wake of the successful Nortel patent auction, four IP-rich companies have stepped forward in an attempt to exploit their IP
Bloomberg reported Kodak is prepping their 1,100 digital imaging patents for sale, and investors seem to think it’s a good idea. One analyst pegged the value as approaching $3B. Interdigital is for sale. Their claim? “Our inventions in wireless modem design, air interface technology, and end-to-end system architecture are the foundation of the wireless networks [...]
BVR Intellectual Property Valuation Case Law Compendium
The new BVR Intellectual Property Valuation Case Law Compendium contains close to 100 court cases abstracts and full text opinions of cases involving a dispute over the value of intellectual property. The compendium includes court case digests written by BVR’s internationally recognized expert legal editorial team and the companion CD is fully indexed and contains [...]
Economic damages symposium focuses on patents
BVR’s new Online Symposium on Litigation & Economic Damages, a thirteen-part series of webinars will cover advanced litigation and economic damages topics. The second session in the series should be of interest to IPVW readers: On September 22nd, Part 2 of BVR’s Online Symposium will cover “Patent damages: The Entire Market Value Rule,” with expert [...]
Entire market value rule wins one, loses one
The law in patent infringement cases is clear: the entire market value rule permits recovery of damages based on the value on an entire apparatus containing multiple features, if the patented feature constitutes the basis for consumer demand. That was the recent holding by the Federal Circuit in Lucent Techs., Inc. v. Gateway, Inc. (Sept. [...]
Pellegrino lists relative success rates of submissions to the FDA
Analysts understand the likelihood of success ties directly to a discount rate in valuing early-stage IP. With that in mind, Mike Pellegrino shared with BVR some FDA statistics that readers will find sobering. Drugs targeting this disease group Experience this success rate arthritis 20.4% central nervous system 14.5% cardiovascular 17.5% gastrointestinal [...]
Preserving IP value should be fundamental to reform
Nilay Patel has written an editorial on patent policy worth saving. Mainly, he answers critics of the patent system, those who say “it is broken,” not by blindly defending what exists, but rather by explaining why it exists and how it can be better. Embedded in the piece is a rational discussion of patent “trolls,” [...]
Quality of IP drives value of IP
Ian McClure writes today in IP Prospective about the quality of the patents in the Motorola Mobility portfolio, stating what drives IP value is quality not quantity. He gives links to three organizations that will help researchers come to their own conclusions. The MMI balance sheet doesn’t help, as we know. But, a $12.5B deal [...]
What license agreements are relevant to determine a reasonable royalty?
Auburn University v. IBM, Corp., No. 3:09-cv-694 (M.D. Ala. May 18, 2011) is instructive because the judge lays out what types of licenses may be considered in coming up with a reasonable royalty for calculating damages in patent litigation. Key points: the technology has to be the same and cross licenses have only “tenuous” relevance.” [...]
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