08 / December 2011

It’s only by first valuing IP assets that they can be managed

Posted in: Intellectual Property News Written by: Randy
Categories: intangibles intellectual property patents trade secrets trademark
Tags: best practices brand value innovation funding investing in IP IP strategy IP valuation research patent value trademark value

Upon the launch of BVR’s new IP Management & Valuation reporter, we asked Mike Moberly to expound on his ideas on valuation of intangibles in today’s world...

“If it can’t be measured, it can’t be managed,” an axiom attributed to Peter Drucker and several others, carries as much relevance today as when it was initially offered.  Increasing percentages (65%+) of a company’s value, sources of revenue, and foundations for growth evolve directly from intangible assets including intellectual properties, proprietary know-how, brand, goodwill, etc.

In fact, there is no other time in history when measuring and managing the value of knowledge-based assets (intangibles) is more necessary to a company’s growth and profitability.

Only by assessing the value of a company’s intangibles can management teams be positioned to recognize, in a timely manner:

  • erosion – undermining of asset value and competitive advantages through misappropriation, infringement, and counterfeiting
  • material changes in assets relative to Sarbanes-Oxley and FASB
  • asset obsolescence
Asset valuation must constitute much more than periodic snap-shots-in-time, however. It behooves management teams today to have an on-going asset valuation process because value and materiality can fluctuate relative to the asset’s vulnerability. When an adverse event occurs, an asset’s value and competitive advantages can be significantly impaired; hence, a company’s (project’s) anticipated profitability and sustainability can be rapidly undermined or stifled altogether.

Current, accurate IP asset valuation allows management teams to be more responsive to:

  • handling inevitable challenges, disputes, and routine external targeting
  • meeting their ever expanding fiduciary responsibilities insofar as protecting, preserving, strengthening, and managing their intangibles
  • allocating /directing resources commensurate with an asset’s value

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