The approaches of IP valuation are generally grouped into two main categories with a few subcategories:
Several approaches and methodologies are commonly used to estimate the value of intellectual property assets. However, businesses often have some difficulty in selecting the method that is most appropriate for valuing a specific asset in a particular business situation, since they all have their limitations and no one method is exclusively suitable in all cases.
There are sets of rules and criteria which may be applied before deciding how the economic value of the IP will be calculated. It is very important to consider the following aspects:
The IP valuation of a company’s assets is a study based on law, economics, finance, accounting, and investment at a particular point in time, which requires expertise on technical matters, intellectual property, marketing, finance and strategy. IP valuation is a process which aims to collect important information in order to determine the actual monetary value of particular intellectual property assets as well as the future economic benefits that they will bring.