What factors affect the value of IP?

Mark Anderson at IP Draughts discussed the difficulties one encounters in valuing IP, and lists the oft-time unpredictable factors that affect that value:

• the strength of patent claims and other IP;
• how much of a competitive advantage the IP brings its owner;
• the size and profitability of the markets for products that are protected by the IP (and whether those products can be brought to market);
• how the IP will be used (e.g., to improve products, as a barrier to competitive entry, or defensively as a cross licensing tool); and
• how rich and determined are other parties that may wish to challenge the IP.

Add to that how rich and determined is the IP owner to fully defend the property rights.