Worlds Inc (WDDD)

[Long term]

FYI:Valuation Tools
https://www.tpa-global.com/business-solutions/valuation-tools

Transforming the World of Tax
The three main approaches are:
1. Cost Based Approach
The cost approach measures the values of the intangible assets by assessing the expenditures necessary to replace the assets. The cost approach is based on the economic concept ofsubstitution, that is, people will pay no more for an asset than it would cost to develop or obtain another asset with similar functionality. Cost items that should be included when valuing the assets include the legal costs, registrations costs, personnel costs, development costs, production costs and marketing and advertising costs.
2. Market Based Approach
Intangible assets are valued by comparing recent sales or similar transactions with similar assets involved in similar markets. This method is applicable when similar markets and similar transactions exist; however, more than often, comparable assets can’t be found due to the uniqueness of most intangibles which limits the application of this method.
3. Income Based Approach
The income approach measures the value of an intangible asset based on the future income streams that are expected to be generated by the asset.
Some income approach methods:
• Relief from royalty method
• Multi Period Excess Earnings method
• Incremental cash flow method?
Business Valuation Tool IP Valuation Tool Super IP-Calculator
This tool enables you to do a rudimentary?business valuation.?All major items are incorporated in this setup.?Default values are shown in 'grey'. This tool enables you to do a rudimentary?IP valuation (patents, trademarks)?using the relief from royalty method.?Default values are shown in 'grey'. This tool allows to assess?internationally used multiples?in order to get a first indication?of a company's value in a particular?industry and country.
START
START
START


The Economic Analysis Method
The economic-analysis valuation method has three approaches: cost, income, and market.

Cost Approach

This approach states that a patent's value is the replacement cost or the amount that would be necessary to replace the protection right on the invention. The replacement cost of an item refers to the amount of money that would be paid, at the present time, to replace the item. If an inventor has an item that he or she has patented, the patent's value would be the amount of money required to replace that invention. A prospective client would not be willing to pay more for a patent than the amount he or she would have to pay to obtain an equivalent protection right.

Income Approach

This method looks to future cash flows in determining valuation. It states that a patent's value is the present value of the incremental cash flows or cost savings it will help provide. When a company or individual develops a product that has the potential to be patented, the underlying hope is that the patented product will cause an increase in sales, or at least be a cost-saving measure in the company. This approach states that the patent's value is the current cash value of these future benefits.

Market Approach

This methodology involves determining what a willing buyer would pay for similar property. In other words, the patent's value is approximately equal to the value of similar patents or patented products that have been sold and purchased before.

Two things must be in place for this approach to be used for patent valuation:

• Existence of an active market for the patent, or a similar one
• Past transactions of comparable property

Look for similar values for the following items when looking for comparable patents:

• Industry characteristics
• Market share or market share potential
• Growth prospects

https://www.investopedia.com/articles/fundamental-analysis/09/valuing-patent.asp

Methodologies for Determining Reasonable Royalty Damages

The fifteen Georgia-Pacific factors are as follows. Not all may be applicable in any given case. Further, some may, in certain cases, act to lower the damages royalty rather than increase it. Thus, in any given case, some factors may increase the royalty, while others could be neutral or tend to decrease it. The net result, however, can never be below the statutory minimum, which is really reflected by the last factor.
• The royalties received by the patent owner for the licensing of the patent-in-suit, proving or tending to prove an established royalty;?
• The rates paid by the licensee for the use of other patents comparable to the patent-in-suit;?
• The nature and scope of the license, as exclusive or non-exclusive, or as restricted or non-restricted in terms of territory or with respect to whom the manufactured product may be sold;?
• The licensor’s established policy and marketing program to maintain its patent monopoly by not licensing others to use the invention or by granting licenses under special conditions designed to preserve that monopoly;?
• The commercial relationship between the licensor and the licensee, such as whether they are competitors in the same territory in the same line of business, or whether they are inventor and promoter;?
• The effect of selling the patented specialty in promoting sales of other products of the licensee; the existing value of the invention to the licensor as a generator of sales of its non-patented items; and the extent of such derivative or convoyed sales;?
• The duration of the patent and the term of the license;?
• The established profitability of the product made under the patent; its commercial success; and its current popularity;?
• The utility and advantages of the patent property over the old modes or devices, if any, that had been used for working out similar results;?
• The nature of the patented invention; the character of the commercial embodiment of it as owned and produced by the licensor; and the benefits to those who have used the invention;?
• The extent to which the infringer has made use of the invention, and any evidence probative of the value of that use;?
• The portion of the profit or of the selling price that may be customary in the particular business or in comparable businesses to allow for the use of the invention or analogous inventions;?
• The portion of the realizable profit that should be credited to the invention as distinguished from non-patented elements, the manufacturing process, business risks, or significant features or improvements added by the infringer;?
• The opinion testimony of qualified experts; and?
• The amount that a licensor (such as the patent owner) and a licensee (such as the infringer) would have agreed upon (at the time the infringement began) if both had been reasonably and voluntarily trying to reach an agreement; that is, the amount that a prudent licensee – who desired, as a business proposition, to obtain a license to manufacture and sell a particular article embodying the patented invention – would have been willing to pay as a royalty and yet be able to make a reasonable profit, and which amount would have been acceptable by a prudent patent owner who was willing to grant a license.??
https://www.fr.com/reasonableroyalty/