Service: IP evaluation or due diligence

This service comprises an audit with technological, legal and market dimensions, to assess the quantity and the quality of intellectual property assets owned by (or to be acquired by) a PRO or university.

What

This service comprises an audit with technological, legal and market dimensions, to assess the quantity and the quality of intellectual property assets owned by (or to be acquired by) a PRO or university. The service may also include an estimation of the importance and value of these IP assets based on their capacity to generate future revenues.

Why

It can be important to ascertain the value of an IP asset in several situations:

  • For internal investment calculations and strategic decision making
  • For countries that require a PRO to calculate a value of IP prior to sale
  • When exploiting IP through licensing or sale including in return for equity in a new spinoff
  • To calculate damages of IP infringement
  • When seeking lending from a bank while providing IP assets as security

How

Information on the IP situation and relevant market data is gathered from the beneficiary via an initial call and market research. This will be followed by a qualitative assessment of the IP-protected technology.

An industry-standard valuation method may then be employed to provide a quantitative measure of the value of the IP asset(s).

  1. Cost approach – determining the amount of capital invested to create the IP
  2. Income approach – forecasting future net cash flow resulting from IP commercialisation
  3. Market approach – conducting market research into comparables

Deliverable

A written report in the form of a slide deck.

Outcome

This service provides the PRO or university with a qualitative and quantitative assessment of the value of their IP-protected technology by an objective, third-party assessor. This is useful for:

  • Making better informed strategic decisions e.g. for internal investment calculations
  • Assessing which commercialisation route to pursue
  • Informing the team about the value of intangible assets created by the research group
  • Negotiating a deal to license patented technology to a third party

Ideal for

PROs who want a clear and defendable financial starting point for technology transfer negotiations. Research groups who wish to ascertain the value of their IP prior to deciding which IP commercialisation strategy to pursue.