Intellectual Property Forensic Analysis Valuation Considerations

Different Standards of Value Apply to Different Sort of Intellectual Property Valuations. Here’s Why it Matters—and How to Figure Which Standards Apply.

Robert Reilly explains how different sorts of intellectual property (patents, trademarks, copyrights, and trade secret) valuations have different objectives depending on their varying purposed. It’s critical to understand those objectives in order to define the elements of a valuation assignment and choose the right standards of value. 

Previous Insights discussions have summarized the general principles related to intangible asset valuation analysis. This discussion refines that topic with respect to how these general principles apply to intellectual property valuation analysis.

The valuation analyst should consider these general principles with regard to each intellectual property valuation and particularly with regard to the forensic analysis valuation. Before conducting any quantitative or qualitative analysis, the valuation analyst should consider how these general principles apply to the valuation assignment.

All valuations are performed for transaction, notation, or controversy purposes. This discussion explains these alternative purposes. Valuation analysts may be asked to render various types of intellectual property opinions.

This discussion describes these different types of opinions. This discussion comments on the considerations related to intellectual property valuations performed for specific purposes. Some of these considerations relate to valuations performed for forensic/analysis controversy, financial accounting, federal and state tax compliance, transaction, financing, and bankruptcy purposes.

This discussion considers the objectives of different types of intellectual property analyses. This discussion describes the different standards of value that apply in an intellectual property valuation. These standards of value relate to the different objectives of the valuation.

This discussion summarizes the types of intellectual property ownership interests and the related term (or duration) of those ownership interests. And, this discussion describes the intellectual property identification process.

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