Help for IP valuations: transactions and messaging

BVWireIssue #105-5
June 29, 2011

One of the toughest aspects of any IP valuation has been the lack of public data on prior IP transactions. Analysts can only make “guesses” of IP value, and that’s always context- specific, according to Andrew Ramer (Marqera), who spoke at last week’s Intellectual Property Business Conference. Another challenge: messaging. Co-presenter Richard Buttrick (RB Intellectual Property) acknowledged that IP valuation is vital to SMEs (Small to Medium Enterprises), but, “in its current form, it is too difficult, complex, unreliable, and expensive.” Thus analysts must present IP and intangible asset valuation in a way that SMEs understand.

Although the difficulties reflected in these presentations are real, BVWire readers know that ktMINE is a good starting place for finding comparable public data, at least with respect to royalty rates and arm’s length license agreements. Good data will help create credible IP values and a clearer “road map” to a conclusion.

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