Intellectual property valuation means calculating company’s value from the perspective of intellectual property by analyzing patents and trademarks, which makes it an important management resource.

There are two types of valuation: qualitative valuation, which helps analyze and measure legal and technical value of intellectual property, and quantitative valuation, which helps calculate the economic and monetary value. The IP valuation is mainly intended to be used for corporate management strategies, business development, and the search for new businesses in the future. For this purpose, intellectual property is classified as intangible assets, and their technical and economic values are objectively analyzed and evaluated.

In addition to the IP owned by the company in question, the analysis may also include the IP of the company’s competitors and the IP of the entire industry to which the company belongs. Factors to be taken into account include confirmation of the current status of the rights, for example, whether the rights have been applied for, published, registered, or are still alive, whether the rights belong to the target company, or the scope of the rights (scope of patent claims) is appropriate, and whether the rights are valid and stable (or if there are any reasons for invalidation). After confirming all that, we can determine whether the intellectual property is consistent with the company’s management strategy and business development, and this process is sometimes referred to as qualitative valuation. IP can also be scored from the above perspective.

Although IP is classified as intangible, it has a monetary value just like tangible property such as real estate. It is possible to calculate the economic value t of IP based on the IP scoring described above and corporate sales relationship with the help of the quantitative valuation.

Our firm has been in business since 1891 and we have a qualified team of experienced patent attorneys in specialized technical fields that can analyze IP from various perspectives and determine which method of valuation is the right one for our clients.

Our firm can provide an IP Valuation report which helps measure the company’s business potential from the perspective of the intellectual property.

For banks and financial institutions, for example, the IP valuation report can be useful in assessing the business potential of customers who are trying to obtain loans. For small and medium-sized companies, it can help manage business by effectively utilizing their intellectual assets and maximizing the attractiveness of their company to the outside world. The key to success in M&A lies in accurate due diligence so in addition to financial, tax, legal, and business due diligence, we can also perform IP due diligence, which has been overlooked until now.

For trading companies, our services are useful for FTO (preliminary investigation of the risk of infringement of third party’s rights) and valuation of the target IP prior to the development of new business or introduction of new products.

We calculate e the value of intellectual property qualitatively and quantitatively based on an assessment of legal validity, an analysis of technological superiority, and an analysis of its current and future contribution to the business.

　(1) Business situations in corporate transactions

　(2) Collateral valuation at financial institutions
　　Rights transfer/acquisition (sale and purchase of rights, offsetting of rights and obligations, etc.)
　　Mergers and acquisitions (provision of information for due diligence at the time of corporate acquisitions, mergers, and stock acquisitions)
　　Licensing (calculation of compensation for licensing of rights, etc.)
　　Litigation
　　Calculation of damages in infringement cases
　　Calculation of the amount of transfer of rights and calculation of the amount of security for rights in civil execution cases

　(3) In-house business situations
　　Calculation of compensation for inventions (reasonable compensation) for employee inventions
　　Asset valuation, collateral financing (confirmation of intellectual property security from the perspective of financial institutions)
　　Valuation of patents in circulation
　　Patent rights contribution in connection with the establishment of a joint stock company
　　Intellectual asset management valuation (recognition and utilization of corporate intellectual assets)

Four industrial property rights (patent right, utility model right, design right, and trademark right) and copyrights are subject to evaluation.

After the contract is signed, we will conduct a questionnaire survey and then provide the IP valuation report usually in about one month.

We can provide two types of IP valuation reports, a detailed version, or a simplified version according to our clients’ needs, deadline, and budget.

Please feel free to contact us if you have any questions regarding IP valuation services.