Patent valuation
Patent Valuation
index
What are intangibles?
Intangible assets (assets that They do not have a physical body but they can generate economic benefits futures) play a important role in valuation of companies either economic models, and the patents they find each other between said assets, andThese types of assets play an important role in finance of any company, already that affect the marketing and reproduction of their products and/or services and by ende his financial position.
At ANEPSA we have trained personnel to carry out appraisals of brands and other types of intellectual property intangibles, governed by IFRS standards and National Financial Reporting Standards.
The aspects of intangible assets can be divided into 4: Market assets, Intellectual Property Assets, Human Assets, Infrastructure Assets, these are generally found in:
- Software
- Brand
- Industrial Secrets
- Patents
- Other Intangibles
- Commercial Credit
What is a patent?
According to the World Intellectual Property Organization, a patent is an exclusive right over an invention. In general, a patent gives its owner the right to decide whether third parties can use the invention and, if so, how, in return Under this right, the patent holder makes public technical information about the invention in published patent documents.
When a company decides to buy a patent, it should ask itself if anyone cares enough to decide to pay to use it, and if the answer is yes, the next step is to ask how much people who use patented products or services will be willing to pay. when patent evaluation becomes an integral part of the business.
What characteristics does Patent Valuation have?
The intangible assets (where we find patents and utility models) have charged great importance today, since its valuation has become a of the areas more interesting for appraisers, since patent consumers determine in big measure his value level.
Therefore, we can say that the valuation of patents will reflect he worth of intangible assets according to the degree of improvement or commercialization of the production process that have reached.
How is its value calculated?
It is important determine with precision what method or methods of assessment are the most appropriate when available sufficient information and data to estimate the fair market value of the patent. As evaluators, we need maximize the use of supplies more observable and relevant, the purpose of use the valuation method is estimate, under current market conditions, the value reasonable of an orderly transaction for sale of assets between market participants at the moment of the valuation, likewise, the evaluator will determine the most appropriate method for any other Finally, IFRS identifies 3 methods of assessment commonly used: focus of market, the method of cost and the method of income. Also establishes that the entity will measure fair value using a method of assessment that is consistent with one or more of these methods.
It will be necessary to evaluate if he TRUE value of the patent can determine with enough certainty using each of the methods described above.
By example, We can use the market approach if there is an observable market to sell and buy brands comparable, showever, Yeah this data set is poorly observed and there is not enough comparable data in it market, should be consider the other two approaches, lor the same happens with the income approach and expenses, pFor the income approach, it will be important calculate Financial statements of the company and use the method of assessment further reliable.
Of this form, will be adopted as a unit of assessment the norm and method of assessment further appropriate in relation to the situation in That divulge the brand or the right to property intellectual.
What methods are used in brand valuation?
COST APPROACH
Based on factors such as: Cost of the graphic designer. Salaries of the people who participate in providing ideas for the name. Advertising expenses. Marketing expenses
MARKET FOCUS
To carry out this method it is necessary to know the value of brands similar to the one being evaluated. Here, the appraiser carries out market research to obtain the closest fair value, the accuracy of which will depend on the size of the sample to be analyzed. To do this, it is necessary to have information that allows us to know how many times a brand that is part of a valuable brand has been cited in a period of time.
INCOME FOCUS
This approach is characterized by projecting the value of the brand into the future. Cash flow (which must be verified throughout the year) and goodwill must be considered here, to calculate this the accounts for the last five years and the audit must be presented, accounts showing the company brand billing amounts.
Why is it necessary to carry out a Patent Valuation?
An owner you may be interested in that If a patent is evaluated for a variety of reasons, including because you are interested in selling it or receiving royalties for using and copying the patent, or simply because you want to know how much it is worth, you may also be interested in having the patent patent has more penetration into market.
Some important aspects why a patent valuation is essential are:
- It is the basis of a buying or selling process.
- Better positioning within the sector.
- Improves negotiation with financial entities.
- It can serve as collateral for loans.
- Recognition in financial statements increasing the company's capital.
- Tax Deduction Benefit
ANEPSA GLOBAL
With Anepsa Global it is possible for this and other types of appraisals to be carried out, contact us by leaving your information or sending a message through our social networks, we are here to provide you with advice and guide you so that you know what type of appraisal is best for you.
