Int. J. of Intellectual Property Management   »   2007 Vol.1, No.3

 

 

Title: Evaluation of intellectual property asset value

 

Author: S.K. Pal, S. Prakash, A. Madhukar, S.P. Mehrotra

 

Addresses:
National Metallurgical Laboratory, Jamshedpur-831007, India.
National Metallurgical Laboratory, Jamshedpur-831007, India.
National Metallurgical Laboratory, Jamshedpur-831007, India.
National Metallurgical Laboratory, Jamshedpur-831007, India

 

Abstract: Intellectual Property Assets (IPAs) from R&D are central to providing incentives for innovation. While it offers Research and Technology Organisations (RTOs) exclusive marketing rights to exploit their inventions commercially, it is imperative to evaluate their values to appropriate the economic benefits of IPAs. Several empirical models of IPA valuation have been developed based on data, experience and market prices. These approaches cannot be generalised to value IPA. These require direct correlation among the expenditure incurred, the market and the income generated. Much emphasis has been laid on the option-pricing-based valuation method for its direct correlation among patent cost, market and income. This method provides a powerful tool for the valuation of IPAs, which helps to make a decision on R&D investments. This paper intends to discuss various issues confronting the valuation methodologies of IPA acquired by RTOs and provides a suitable approach for the valuation of IPAs.

 

Keywords: intellectual property assets; IPA value; patent valuation; real options model; innovation incentives; option pricing; R&D investment; research and development.

 

DOI: 10.1504/IJIPM.2007.013553

 

Int. J. of Intellectual Property Management, 2007 Vol.1, No.3, pp.174 - 183

 

Available online: 04 May 2007

 

 

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