Commercial Evaluation

Commercial Evaluation

At IIPRD, we specialize in helping clients thoroughly evaluate their patent portfolios. Whether it is for a detailed objective valuation of the entire portfolio or just a part of it, we assess various factors including market fit, commercial relevance, claim strength, monetization potential, and enforceability of patents. Our reports provide a comprehensive analysis, guiding clients on whether to maintain their patents, self-commercialize, out-license, sell the IP, or adopt other strategies to manage their IP portfolios effectively.

IIPRD, as part of its commercial evaluation services, offers extensive global coverage and a broad technological range to meet client’s patent commercialization requirements. IIPRD focuses on delivering an unbiased evaluation of the IP/Patent Portfolio, and collaborates with Clients’ R&D/Legal teams to determine the patent strategy, strength, enforceability, license ability, and market relevance.

Additionally, IIPRD is regularly engaged in conducting comprehensive commercial evaluations of patents within a portfolio. These evaluations cover patentability, freedom to operate, infringement analysis, potential infringement scenarios, and commercialization potential. Our detailed reports include potential licensees, SWOT analysis of the technology, comparisons with key competing products, and insights into industry behaviours regarding in-licensing and IP acquisitions. These analyses help patentees understand the underlying potential of their technology.

What Is Patent Valuation? How Do I Sell My Patent?

Patents have a significant effect on the valuation of a business. Valuation of patents can be determined by various factors, such as the size, scope and attributes of the patent portfolio, industry in which it operates, licenseability of the subject matter in general, market size, and the contribution of patents to product mapping, among other parameters. The value of a patent is typically calculated based on its royalty value or sale price or the ability to generate revenue through commercialization. Royalty value is determined by multiplying the royalty rate with the net sales price per unit.

Intangible asset valuation is the process by which one assigns a specific value or a range of values to an intangible asset that include brands, goodwill, patents, trademarks, copyrights etc.

IIPRD along with Khurana & Khurana has a core practice area in the domain of commercial valuation as an independent IP Valuation firm. K&K follows stringent delivery practices that are consistent with defined quality standards. K&K works closely with its sister company IIPRD, both of which supplement each other in order to provide end-to-end IP Legal and Commercialization/Licensing services to over 3000 Corporates. IIPRD has a team of over 250 professionals spread across 10 offices (New Delhi, Noida, Pune, Mumbai, Indore, Hyderabad, Bangalore, Punjab, Chennai) in India along with an incorporated office in the US, and Khurana & Khurana, has strong rankings from Legal 500, Managing IP, IAM, Chambers, Asia IP, Global 100, RSG, Niti Aayog, Assocham, WIPR Leaders, Global Venture, ACQ5 among others.

IIPRD has assisted Global Entities in the domain of Pharmaceuticals, Life Sciences, Engineering, Software, Semiconductors, among others to conduct Patent and IP Valuation exercises for their products, sub-features/modules, and brands. Our goal as IP Valuation Professionals is to find out the most equitable, fair, and realistic method of calculating objective value for a given IP. We firmly believe that value must be determined by market conditions, and that any valuation should reflect the current world and economic realities. In many businesses, it is also critical that valuation methodologies remain adaptable to quickly and consistently changing environments. IIPRD is committed to assisting clients in establishing and growing the value of their IP and Intangible Asset Portfolio while reducing risk and ambiguity.

Valuation Methodologies we Employ

IIPRD professionals consider various distinct valuation methodologies, taking into account the available information and the current circumstances, to determine the best method or combination of methods for determining intrinsic value of the subject intangible asset. The following are the four widely acknowledged methodologies:

  1. Market Strategy: Intellectual property and intangible assets are appraised using this method by comparing assets in question to recent deals involving similar assets in similar marketplaces. This strategy works best if there is an active market that can give multiple examples of recent arm’s-length transactions with sufficient terms and conditions.
  2. Cost Methodology: Cost of developing an asset in the past is sometimes used to determine its value. This strategy does not guarantee that economic gain derived from owning and using IP will be realized, and rather gives the subject IP an absolute minimum value.
  3. Income Strategy: This strategy is focused on calculating future income streams attributable to the asset in question. Because the information required is often quite accurate and relatively readily available, this methodology is one of the most widely utilized methodologies in intangible asset appraisal.
  4. Approach to Royalty Relief: Capitalized value of royalties that the company is relieved from paying due to its ownership of the assets is used to determine the worth of IP. This strategy, like the Market Approach, uses royalty rates based on marketplace transactions and Income Approach based on revenue projections.

Each approach has its own advantages and disadvantages that are determined based on data related to market factors such as previous revenue results/numbers, industry trends, and the competitive climate, as well as the specific quality of the asset(s) being valued and extent to which they are utilized. Our IP valuation professionals weigh all of these factors, along with others, in order to determine the best analysis method for a given valuation scenario.

Intangible Assets & IP Estate Valuation And Planning

When it comes to estate planning or distribution, value of one’s IP portfolio is essential and it affects the taxes. In estate planning, for example, we frequently encounter different classes of IP: copyrights, patents, and trademarks; all contribute to the estate’s total value. The legal analysis also includes the right of publicity which is also a form of property credited to certain personas where the person’s identity can be separated, even after death, from the persona themself; this analysis is deemed particularly suitable for celebrity clients since post-mortem publicity rights can significantly contribute to the value generated.

Unlike some other appraisals of publicity rights that give insufficient consideration to other IP in the estate, our estate valuation reports for celebrity clients cover the value of all rights, including publicity rights, making a fair evaluation of all the estate’s assets. This approach makes certain that all the main asset are ascertained for the estate and tax management purposes.

Determination of IP Royalty Rates – IP Valuation

IP Management and Research are intertwined, and IIPRD has one of the biggest collections of licensing databases along with information on valuation and royalty rates. The research and data acquisition processes have provided more than thirteen thousand transactions; thus, the present project is one of the largest proprietary databases of licensing and value. There are also thousands of additional data points from public documents. We have the skills to determine royalty rates internationally and the ability to determine them since we analyze royalty trends and monitor trademark values.

How We Serve

  • Determine R&D, Intellectual Property, and Patent Portfolio Strategies: To enhance the value of developing R&D and IP portfolios, we assist clients in formulating and adjusting their strategies.
  • Decide Whether to Pursue or Alter Specific IP Strategies: The metrics we provide to clients through our analyses are designed to inform the strategic direction of their IP, including recommendations on where they should be heading and if changes to their plans are required.
  • Undertake IP/Patent Commercial Evaluation and/or Valuation Exercises: We offer our clients qualitative reports and estimates to enable our clients to have the correct appreciation of their IP assets.
  • Protect and Defend Patents or Patent Portfolios: This legal offering can encompass protection of patents and defense against infringement and other related legal issues.
  • Save Time and Money by Avoiding Lawsuits: Thus, by offering the correct value for a business and proper consulting, we minimize the number of legal issues.
  • Leverage a Portfolio’s Earning Potential: We help clients to optimize the earning capability of their asset portfolio by commercializing the ‘value’ of the IP.
  • Facilitate the Licensing or Sale of Patent Holdings: The vast databases in conjunction with the expertise in the market relieve clients to identify potential buyers or licensees of the IP assets in order to promote successful transactions.

At IIPRD, we are committed to providing top-tier IP valuation and management services, helping our clients navigate the complex landscape of intellectual property with confidence and clarity. Our expertise and dedication ensure that clients receive the support they need to optimize their IP portfolios and achieve their business goals.

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