Caution urged with relief-from-royalty valuations


Mike Pellegrino in BVR’s Guide to Intellectual Property Valuation states why ktMINE’s royalty rate finder search tools that allow analysts to isolate exclusive arrangements are important, especially when choosing the relief-from-royalty valuation method:  “…there are fundamental abuses of the relief-from-royalty method (e.g., using a nonexclusive royalty rate to represent the entirety of rights that some pieces of IP might confer) that weaken the use of the method for a core valuation engagement.”

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