Intellectual Property and Assessing its Financial Value

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Assessing the financial value of IP

Abstract: Creating and protecting new IP are a first crucial step

in successful commercialization and for building and keeping

competitive advantage. For business development, e.g. licensing,

it is important to assess the financial value of new IP. This can

be done via simple methods using industrial standards or rules

of thumb for a specific industrial sector, such as the “25 percent

rule” or “FRAND”. More labor-intensive methods are based on

discounted cash flow (DCF) techniques. Various DCF systems are

presented that can take into account the level of uncertainty or the

risks associated with a specific ...