Finding and Analyzing Royalty Rates

BVResearch Pro
Training Event Transcripts
March 9, 2011
David R. Jarczyk, MBA


By rejecting the previously accepted 25% "rule of thumb," Uniloc v. Microsoft has established a future where more stringent analysis and documentation will be paramount to creating a compelling argument in the calculation of patent infringement damages. With a new onus on appraisers to perform thorough and exhaustive due diligence in royalty rate calculations, third-party licensing agreements have become an even more important part of any damages analysis. For many practitioners, knowing where to find relevant (and unredacted) market comparables, determining which royalty rate benchmarks are appropriate to use, and understanding what additional licensing terms might affect asset values can be an arduous process. In Finding and Analyzing Royalty Rates, expert David Jarczyk joins BVR for an in-depth examination of key strategies for locating and breaking down intangibles licensing information for use in business valuation studies, such as purchase price allocations, capitalized value determinations for after-tax royalties using the relief from royalty method, and goodwill impairment analyses under SFAS 141r/SFAS 142. Jarczyk will also turn the spotlight on the intricacies of license agreement construction, with a special emphasis on identifying terms that impact valuation such as upfront payments, milestone payments, or mandatory payments.
Finding & Analyzing Royalty Rates
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