How does Monte Carlo simulation analysis aid in valuing trade secrets?
Jacquelyn Dal Santo in a Willamette Management Associates Insight article outlined a hypothetical case study which assumes an analyst will value a trade secret using the discounted cash flow method. She poses the question about how to best handle the following data gaps. Bookmark on DeliciousDigg this postRecommend on Facebookshare via RedditShare with StumblersTweet about [...]
When valuing IP in a company, don’t lose sight of the overall cost of capital for that business
John Rugman and Tony Hadjiloucas of Pricewaterhouse Coopers caution that the discount rates applied to the valuation of individual intangible assets in a company need to be reconciled to the weighted average cost of capital (WACC) in a business. Bookmark on DeliciousDigg this postRecommend on Facebookshare via RedditShare with StumblersTweet about itSubscribe to the comments [...]
Will patent reform serve to attract the capital required to improve IP values and stimulate innovation?
Glenn D. Sacks, CPA, of Marks Paneth & Shron LLP, writes the changes in patent law being ushered in by America Invents Act will work to increase the value of patent portfolios and create a system which spawns and nourishes innovation. Here’s how he sees it working: Bookmark on DeliciousDigg this postRecommend on Facebookshare via [...]
What happens to Kodak IP licensees now that bankruptcy has been sought?
The Intellectual Property and Transactional Law Clinic at Richmond covered this in a brief paper, at least as it pertains to federal law. Section 101(35)(A) of the Bankruptcy Code limits intellectual property in bankruptcy to trade secrets, patents, (and patent applications) and copyrights. The Code gives Kodak three options with respect to contractual obligations: assume, [...]
Legos’ effort to use trademark law to extend their patent challenged in the U.S.
Legos’ aggressive attempt to use a 1999 trademark of a 3D photographic representation of the “studs and tubes” interlocking system on their toy building blocks as a long-expired patent extender looks to be in its last stages. Bookmark on DeliciousDigg this postRecommend on Facebookshare via RedditShare with StumblersTweet about itSubscribe to the comments on this [...]
Trade secrets: management and valuation
Trade secrets are difficult to define, and trade secret law even more so. Even the first sentence points to confusion. Is it trade secrets or trade secret? Are trade secrets IP rights, or do the courts think of trade secrets actions as common law torts? Trade secrets aren’t registered … that would defeat the purpose. [...]
Intel trademarks Ultrabook™, but is the horse already out of the barn?
MacBook Air defined the market. Light, thin, attractive, high-performance, energy conserving laptops will sell, and at a premium price. They have collectively taken on the label “ultrabooks,” a natural combination of ultra-light or ultra-thin and notebook (though more likely an extension of MacBook). Now Intel has trademarked “Ultrabook™.” Bookmark on DeliciousDigg this postRecommend on Facebookshare [...]
How much is a customer worth?
Valuators encounter this question a lot, in executing purchase price allocations, in calculating damages, etc.: how much are customers worth, in the form of a customer list or customer relationships? Bookmark on DeliciousDigg this postRecommend on Facebookshare via RedditShare with StumblersTweet about itSubscribe to the comments on this post
Analysts’ expectations exceed company’s ability to compensate for patent cliff at Lilly
When Eli Lilly’s patent protection for their antipsychotic drug Zyprexa expired last Fall, analysts sought information on how Lilly would make up for the loss of $3B in related revenues. They were comfortable in forecasting 2011 earnings per share of $3.67. In addition, most companies facing the patent cliff force significant reductions in sales expenses [...]
Patent agents are taking advantage of provisional patent applications
It appears patent agents are catching on to the advantages of provisional patent applications. As reported in IPBlog last March, they not only offer the needed protection for an invention, but that they also extend the term of the protection by up to one year. Dennis Crouch in PatentlyO has taken a detailed look at [...]
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