Utilization of IP and

Need for Valuation

By
Dr. Kalyan C. Kankanala
kalyan@brainleague.com
www.brainleague.com
www.indianipinfo.blogspot.com
 Introduction
• Nature
• Scope and Extent
• Differences from Real Property
• Tangibility
• Term
 Species
• Patent
• Copyright
• Trade Mark
• Trade Secret
• Geographical Indication
• Plant Variety
• Traditional Knowledge
• Integrated Circuit ...
 Utilization
 Self Exploitation
– Independently
– Jointly

 Transfer
– Assignment
– Licensing
 Utilization
• Independent
• Portfolio
• Dedicated IP Entities
• Collaboration
• Government entities
• Patent Pools
• Patent Trolls
• Standards
 Valuation
• Monetary value
• Portfolio Development and Management
• Financial statement
• Licensing and Assignment
• Merger and Acquisition
• Investment
• Enforcement
 Portfolio Development and
Management
• Business objectives
• Investment in R and D
• Technology landscape - Opportunities space
• IP Maintenance
• IP Transfer
 Financial Statement
• Value of a company
• Tax planning

COMPANY 2009 2010

Microsoft $1973 $1759
Philips €4161 €4358
Infosys $07 $12
 Licensing and Assignment
• Royalty or Consideration
• Lumpsum, Fixed or Running
• Running range - 0.1 -25 percent
• Valuation to assess the royalty rate
• Varies based on the field
 Merger and Acquisition
• Value of IP during acquisition

COMPANY TRANSACTION IP VALUE OF

VALUATION TRANSACTION

HP Acquisition of $1.5 billion $24 billion

Compaq

MONSANTO Acquisition of $1 billion $1.1 billion

HOLDEN

AgroEvo Acquisition of $700 million $730 million

AGS
 Investment
• Role of IP in business
• Competitive advantage and business
value
 Enforcement
• Litigation
• Remedies
• Damages
• Account of profits
• Reasonable royalty
• Costs
 Diversity
• Patents
• Copyrights
• Trade Marks
• Trade Secrets
 References
• http://www.ipeg.eu/blog/?p=1401
• http://www.wipo.int/sme/en/documents/ip_valuation.htm
• http://www.sans.edu/resources/leadershiplab/ip_valuatio
n.php
• http://www.thetso.com/Info/evaluation.html
• http://www.shk-dplc.com/cfo/articles/value.htm
• http://www.iptoday.com/pdf/2007/1/Cromley-Jan2007.pdf
• http://faculty.darden.virginia.edu/chaplinskys/PEPortal/Do
cuments/IP Valuation F-1401 _watermark_.pdf
• http://www.inventionstatistics.com/Licensing_Royalty_Rat
es.html
 Thank you.

kalyan@brainleague.com
www.brainleague.com
www.indianipinfo.blogspot.com