Table of Contents

• CHAPTER 1: ABOUT THIS GUIDE
  • The Growing Importance of IP
  • Why Is This Guide Needed?
  • What This Guide Is Not
• CHAPTER 2: IP VALUATION OVERVIEW
  • About Patents
  • The Advantages of Patents
  • The Disadvantages of Patents
  • About Copyrights
  • The Advantages of Copyrights
  • The Disadvantages of Copyrights
  • About Trademarks
  • The Advantages of Trademarks
  • The Disadvantages of Trademarks
  • About Trade Secrets
  • The Advantages of Trade Secrets
  • The Disadvantages of Trade Secrets
• CHAPTER 3: ABOUT IP VALUATION
  • Applying the Science
  • Practicing the Art
  • The Science-Art Continuum
• CHAPTER 4: USING VALUATION APPROACHES
  • The Cost Approach
  • The Market Approach
  • The Income Approach
  • The Assignment-Approach Match
  • Common Pitfalls of the Various Approaches
  • Reconciling Several Valuation Approaches
  • Valuation Method Selection Summary
• CHAPTER 5: GENERAL DUE DILIGENCE
  • Performing Initial Interviews
  • Analyzing Historical Financials
  • Understanding the IP
  • Verifying IP Ownership
  • Commissioning Independent Counsel Review
  • Reviewing Enforcement History and Ability
  • Performing Market Analysis
  • Evaluating the Regulatory Environment
• CHAPTER 6: PATENT DUE DILIGENCE
  • The Invention Status
  • Current Art
  • Patent Utility
  • Patent Quality
  • Patent Age
  • The Administrative House
  • Blocking Patents
  • Status of Active Administrative or Legal Actions
  • Outstanding Contractual Provisions Affecting Value
• CHAPTER 7: COPYRIGHT DUE DILIGENCE
  • Nature of the Copyrighted Material
  • Verifying the Nature of Rights to Value
  • Administrative Issues That Can Impair Copyright Value
  • Registration
  • Factual Works
  • Fair Use Value Erosion
  • Work Made for Hire
  • Copyright Notice
  • Ease of Duplication
  • Mechanical Rights for Nondramatic Musical Works
  • Termination of Transfers
  • Public Domain
  • Visual Artists Rights Act of 1990
  • Special Considerations for Computer Software
  • Easier to Avoid Infringing Activity
  • Disclosure
  • The Rule of Doubt
  • Special Considerations for Semiconductor Designs or Masks
• CHAPTER 8: TRADEMARK DUE DILIGENCE
  • What Is Trademark Due Diligence?
  • Maintenance Fees
  • Owner of Record
  • Pending Trademark Challenges
  • Continued Use
  • Public Notice
  • Durability
  • Incontestability
  • Interference
  • Standards of Use
  • Trademark Strength
  • Dilution
  • Counterfeit Risk
  • Market Dynamism
  • Fair Use Value Impacts
• CHAPTER 9: TRADE SECRET DUE DILIGENCE
  • Trade Secret Value Sources
  • Trade Secret Floor Value
  • Factors That Prolong Trade Secret Value
  • Factors That Kill Trade Secrets
  • Litigation Effects
  • Inadvertent Disclosures
  • Trade Secret Agreement Terms
  • Publication as Patent or Copyright
• CHAPTER 10: DISCOUNT RATE DEVELOPMENT
  • Accounting for IP Risk
  • Deeper Analysis of Current Methods
  • An IP Discount Rate Estimation Model
  • Target Rate of Return
  • Holding Period
  • Success Rates
  • Target Returns
  • Investment Expenses
  • What About Empirical Evidence of Support?
  • Proving the Model
  • Model Extensions
  • Back to the Roots
  • Real-World Examples
• CHAPTER 11: DETERMINING ROYALTY RATES
  • Royalty Rate Considerations
  • Royalty Rate Magnitude
  • Common Royalty Rate Determination Methods
  • Analytical Royalty Rate Determination Process
  • Calculating the Value Proposition
  • Determining Licensor and Licensee Contributions
  • Analytical Method Attack Points
• CHAPTER 12: CASE STUDY IN IP VALUATION
  • A Poor Example of Celebrity Valuation
  • A Credible Approach to Celebrity Valuation
• CHAPTER 13: MANAGING AN ENGAGEMENT
  • Project Preparation
  • Initial Due Diligence
  • IP Analysis
  • Market Analysis
  • Valuation Modeling
  • Valuation Reporting
  • Project Support
• CHAPTER 14: AUDITOR’S REVIEW GUIDE
  • Analyzing the Analyst
  • Analyzing the Due Diligence
  • Report Boilerplate
  • Economic Conditions and Nature of the Industry
  • IP Utility
  • Government Protections
  • Functional Realization
  • Demand Analysis
  • Financial History
  • Chronology
  • Royalty Rate Analysis
  • Income Approach Using Reasonable Royalty Method
  • Consideration of Cost Approach
  • Use of Market Methods for IP Valuation
  • Use of Valid and Reliable Inferential Statistics
  • Repeatability