Section: Determining the value of IP | IP management: value extraction and commercialisation | e-learning centre
Main course pageDetermining the value of IP
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Determining the value of IP
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Main purposes of this module:
- to introduce the various types of assets and their relative importance across industries, with a focus on the value of European patents
- to discuss the main valuation methods in patent evaluation (cost-, market-, income-based)
- to highlight some further patent valuation methods based on rating tools
- to provide guidance on selecting the most relevant valuation method
Topics to be covered:
i. Different types of assets, value
ii. Main valuation methodsRead more about this module:
The relevance of intangible assets in company valuation has increased progressively over the years. Patents play a particular role in this, especially in the case of M&A.
Three main methods for valuing IP assets are explored: cost-, market- and income-based, depending on the time perspective. The income-based method is elaborated upon in more depth, using the discounted cash flow (DCF) valuation method. In addition, an overview is provided of some alternative valuation tools, based on patent rating. To round up, some guidance is given on how to choose the most appropriate valuation method.
- to introduce the various types of assets and their relative importance across industries, with a focus on the value of European patents