Mark Anderson at IP Draughts discussed the difficulties one encounters in valuing IP, and lists the oft-time unpredictable factors that affect that value:
- the strength of patent claims and other IP;
- how much of a competitive advantage the IP brings its owner;
- the size and profitability of the markets for products that are protected by the IP (and whether those products can be brought to market);
- how the IP will be used (e.g., to improve products, as a barrier to competitive entry, or defensively as a cross licensing tool); and
- how rich and determined are other parties that may wish to challenge the IP.