What is the objective valuation of intellectual property?

更新日 ： 2016.01.23

Valuation of intellectual property has difficulty in selecting and quantifying valuation parameters, particularly as for how to reflect them in the royalty rate.

The intellectual property evaluation of patents includes qualitative evaluation by ranking and scoring the patent right and patent technology and the business environment surrounding them, and quantitative evaluation by financial evaluation.
When sales are generated by the patent right, it is common to evaluate the value of the patent right using the Income Approach.
The ratio of the contribution of patent right to sales is referred to as the contribution ratio of intellectual property. It is objective to use the royalty ratio as this contribution ratio.
The royalty rate in the exempt royalty method is then determined based on the magnitude of the scoring of patent technology, from which the cash flow is calculated, which is applied to the DCF method and discounted to present value.
It is the financial value of the patent.
This is an extremely rough explanation of intellectual property valuation.
Of course, the above process has more detailed steps, and it is well known that various parameters are involved.
It is difficult to select and quantify evaluation parameters, especially to reflect them in the royalty rate.

Asamura Patent Office’s Intellectual Property Valuation Service (AIVAS) is working to ensure that patent attorneys, intellectual property analysts and certified public accountants can team up to provide objective valuation.