Consulting Center

Valuation of Intellectual Property

The need for valuation of intellectual property is connected with innovative development of national economy and with the increase of intellectualization in the competitive business.

These days companys welfare is measured not by its material resource base, labor power or even finances. The main success factor on the market is the bulk of knowledge owned by the company, its so called intellectual capital, main part of which is comprised by intellectual property, i.e. rights for results of creative activities: inventions, utility models, industrial samples, trademarks, geographic marks, commercial secrets, software, databases, works of art and literature, audio and video records etc. It is these capital that ensures competitive power of produced products and provided services, and they also earn business additional profit.

Intellectual capital include knowledge, skills, production experience and intangible assets: rights for inventions, databases, software, trademarks etc. These assets are involved in business function of the company and in maximizing profit.

One of the most prioritized and developed area of activity of Consulting Center is valuation of intellectual property rights and intangible assets.

Proper valuation of intellectual property rights allows you to:

  • Increase your companys market value, for intangible assets value is added to other assets
  • Increase damage to property in case your companys intellectual property is illegally used by third parties
  • Decrease your companys income tax
  • Create additional asset which bears independent commercial interest

Valuation of intellectual property is performed in following cases:

  • Purchase or sale of intellectual property rights
  • Need for giving proof of payments for intellectual property usage in case of upcoming licensing contract signing
  • Privatization of an enterprise
  • Companys bankruptcy or liquidation
  • Pawning intellectual property objects
  • Using intellectual property objects as a compound of a franchise
  • Severance of companys property between owners
  • Company takeover or merging
  • Valuation of investment projects which utilize intellectual property objects
  • Adding intellectual property objects to authorized capital stock
  • Intellectual property insurance
  • Valuation of intellectual property share in companys cost efficiency in domestic manufacture
  • Calculation of intellectual property objects authors fee
  • Valuation of companys intangible assets in order to make them financially accountable, clarification of taxable base

Assets are considered intangible if they are not of material structure. Such assets often appear among other companys assets and can generate additional income. The cost of intangible assets of well-known trademarks (brands) may exceed 50% of all assets, hence their correct valuation is highly important.

Some special types of intangible assets in valuation:

  • Copyright and related rights
  • Industrial property
  • Commercial classified information
  • Proprietary interests (rights for usage of property, land, water resources, mineral resources etc.)

Out experience in valuation of intellectual property and intangible assets:

  • Oberbeton Invest, LLC
  • Lviv Insulator Company, LLC
  • State Finance Institution for Innovations
  • ESO, LLC
  • Yanosh Wigs Design Bureau