Summary
The part two of a three-part series about intellectual property valuation is presented. When considering the value of intellectual property used as collateral for lending and securitization, it is important to understand that the value of these assets will vary depending on the context of the valuation. Intellectual property is not a finite asset in the way that tangible assets are. An important part of identifying the valuation context is the determination of which assets are to be included in the analysis. Patents, trademarks and copyrights are the usual focus. Although there are many exceptions, technology assets such as patents, formulae and trade secrets generally hold their value better than marketing assets such as trademarks and brand bundles. Identifying and understanding the value of intellectual property is complex. A number of critical factors must be considered to provide an accurate and useful valuation.
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Context Is Critical
In part one of this three-part series, we discussed the concept of intellectual property used as collateral for securitization and lending. We stated that intellectual capital is more readily available for strategic use than ever before. Whether the IP owner is interested in a straightforward loan using valuable trademarks and customer lists as collateral, or in securitizing the royalty payments associated with licensed assets, there are options available today that will help to reduce risk, increase return and provide flexibility for resourceful owners of intellectual property.
In part two, we br...See the full content of this document
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