7. Estimation of risk or influence coefficients
The final value obtained by market valuation (or income valuation, as explained below) is weighted by risk coefficients linked to the various events that can alter this value.
Risks can be divided into four main categories.
Legal risks : for example, those relating to validity, freedom to operate, geographical scope, scope of protection (classes of products and services for trademarks, categories of claims and limited or broad claims for patents), soundness of property rights over the asset (extent of a licensing agreement, validity of a chain of transfers of rights, assignment of an inventor's or co-author's rights), notoriety, dilution or degeneration for a trademark, enforceability of title (title issued or registered, ease of proving infringement) etc.
Technical risks: these depend...
The Ultimate Scientific and Technical Reference
This article is included in
Management and innovation engineering
This offer includes:
Knowledge Base
Updated and enriched with articles validated by our scientific committees
Services
A set of exclusive tools to complement the resources
Practical Path
Operational and didactic, to guarantee the acquisition of transversal skills
Doc & Quiz
Interactive articles with quizzes, for constructive reading
Estimation of risk or influence coefficients
The future income method
Bibliography
R. Goldscheider, J. Jarosz and C. Mulhern, Use Of The 25 Per Cent Rule In Valuing IP , LES News, December 2002
Websites
http://www.ipresearch.com/index.htm Intellectual Property Research Associates website, offering information on licensing rates by industry sector.
www.lesi.org Licensing Executives Society website
Acronyms and abbreviations
CAPM: Capital Asset Pricing Model
WACC: Weighted Average Cost of Capital
DCF: Discounted Cash Flow
EBITDA: Earnings Before Interest Taxes and Amortization
ENPV: Expected Net Present Value
ISO: International Organization...
Vocabulary
Due diligence: financial audit
Cash flow: surplus of financial flows generated by the operation of intangible assets.
The Ultimate Scientific and Technical Reference
