InvestorsHub Logo
icon url

dp60

01/14/18 10:57 AM

#13265 RE: boston745 #13264

Boston745,

It may not be super helpful for me to post an article here that shows how complicated these IP valuation issues are, but I like the point below that multiple methods are in principle applicable equally. These are no doubt extremely complicated processes and difficult to arrive at educated estimates. I appreciate those who take a crack at providing numbers here, and am interested in what goes into these valuation processes even if Im not confident enough to make educated guess myself. I think its useful just to have a sense of whether AMDA would be worth more or less than LDR (for example), regarding specific categories of Technology, IP, Goodwill, customers, etc., and some of the basic thinking behind that, as we await future developments.

http://www.wipo.int/sme/en/documents/ip_valuation_fulltext.html

Intangible Asset & Intellectual Property Valuation: A Multidisciplinary Perspective

For most IP valuation applications there is no hierarchy of methods, and all methods are in principle applicable equally. In addition, most practitioners would concur that all valuation methods, if applied properly, should converge near a similar valuation estimate. As a consequence, many practitioners suggest employing multiple valuation methods for a given IP asset to demonstrate robustness and completeness of the analysis. In practice this is often difficult as data for multiple methods is often unavailable or the economic characterization of the asset precludes use of a method (i.e., an entrepreneurial IP asset by definition will not have a meaningful replacement cost method application). The field of IP valuation has been evolving as rapidly as the explosion of IP in the economy and the complexity of IP in the legal field. However, while the methods will certainly change over time, the requirements to ground the analysis in the key Foundation issues and to Profile the business, legal and financial issues will remain critical to IP valuation.

icon url

dp60

01/14/18 11:41 AM

#13266 RE: boston745 #13264

Also Boston,

I hope you take a crack at formulating amda value in BO situation, as CL101 asked. I really appreciate the ways both you and CL can formulate ideas and attack difficult problems.

I agree with CL, by the way, and am not particularly worried about your earlier concerns.

glta,