scholarly journals Intellectual Property Valuation Using Income Approach Method for Technology Licensing

2011 ◽  
Vol 3 (6) ◽  
pp. 302-314
Author(s):  
Dhruv Joshi

Technology licensing is one of the key transactions that enable translation of R&D investments into profits by commercialization of technology. The elementary economics of such transaction suggests that while a licensor attempts to derive benefits greater than the cost of development of the technology protected by IPR, in exchange of monopoly rights, the licensee attempts to minimize the license value to ensure higher profits. This leads to the requirement of valuation of the technology by either party. This paper presents some of the key characteristics related to intellectual property valuation and an analysis of the income method approach in estimating the profitability of commercialization of a technology involving a patent.

2020 ◽  
Vol 216 ◽  
pp. 01174
Author(s):  
M.A. Mahkamova

The issues of assessing the loss of intellectual property value in the market conditions at energy sector enterprises are studied. The cost approach method is revealed, which implies taking into account the cost of reproduction of the intellectual property being valued in current prices less depreciation, as the most effective method of intellectual property valuation. The article suggests the author's approach to grading the estimation of lost utility of intellectual property.


2019 ◽  
Vol 4 (01) ◽  
pp. 1
Author(s):  
Erni Br Simanjuntak ◽  
Gede Harja Wasistha

<p><em>New challenges arises for government institutions engaged in research and engineering to continuously innovate and develop technologies that have competitive advantages and provide income for the country through royalty from licensed technology. This research carried out to valuate the aeronautics and space technology. The objective of the study is to develop appropriate intellectual property valuation methods. This research is a case study utilizing sequential mix method which is the combination of quantitative and qualitative research. By using intellectual capital theory, this research-broaden the literatures on the technology valuation in the field of aeronautics and space. This study fills research gap on the existing technology valuation method that is still partially conducted by government research and development. </em></p><p><em>This study discusses the value of intangible assets and licenses from intellectual property that are calculated through three valuation approaches, such as cost-based approach, income-based approach, and market-based approach. The results of the study show that the most appropriate intellectual property valuation method are the cost-based approach and income-based approach.</em></p><p><strong><em>JEL Classification: </em></strong><em>O30, O31, O33</em><strong></strong></p><strong><em>Keywords</em></strong>: <em>Cost Based Approach,</em><em> Income Based Approach, Intellectual Property, Market Based Approach, Sequential Mix Method </em>


2018 ◽  
Vol 21 (1) ◽  
pp. 113-143
Author(s):  
Maurizio d’Amato ◽  
◽  
Paola Amoruso ◽  

Whilst the property market shows cyclical behaviours, opinions of value based on income approaches assume that there is stable or perpetually growing (or decreasing) income without considering the effects of the property market cycle on leasing contracts. The paper therefore focuses on the application of a valuation method for income producing properties which have a value that is affected by the upturns and downturns of property market cycles. Continuing from the previous works in this area (d¡¦Amato, 2003, d¡¦Amato, 2013; d¡¦Amato, 2015) the income approach method here is applied to the office market in four areas of London. In applying this valuation method, property valuation and time series analysis are integrated. The work provides a general introduction on cyclical capitalization as another family of valuation methodologies based on the income approach and then an application of cyclical capitalization to areas of London which highlight their strength and weakness.


2017 ◽  
Vol 30 (1) ◽  
pp. 83-89
Author(s):  
E. S. Epifanov ◽  
N. Z. Atarov

This article presents a description of the main methods of valuation Internet business: a comparative approach, the income approach, the cost approach; and provides guidance on the valuation of Internet projects.


2021 ◽  
pp. 135918352110288
Author(s):  
Eva Hemmungs Wirtén

This article is about an everyday paper object: an envelope. However, as opposed to most other flat paper containers, the enveloppe Soleau can only be bought from L’Institut national de la propriété industrielle (INPI) in Paris. At the cost of €15 you get a perforated, double-compartment envelope allowing you to constitute proof of creation and assign a precise date to your idea or project. But the enveloppe Soleau is something much more than just a simple and cheap way by which you can prove priority in any creative domain. It is a material footprint anchored to centuries of practices associated with disclosure and secrecy, a gateway into the infrastructure of the intellectual property system and its complicated relationship to the forms of knowledge it purports to hold. The purpose of this article is to consider the making of the enveloppe Soleau as a bureaucratic document, a material device performing a particular kind of legal paperwork. In four different vignettes, the article tracks the material becoming of the enveloppe Soleau as an evidentiary receptacle, beginning by going back to early modern practices of secrecy and priority, continuing with its consolidation in two patents (from 1910 and 1911) to the inventor Eugène Soleau (1852–1929), and ending up, in 2016, dematerialized in the e-Soleau. As a bureaucratic document, the enveloppe Soleau shows just how much work a mundane paper object can perform, navigating a particular materiality (a patented double envelope); formalized processes of proof (where perforations have legal significance); the practices of double archiving (in an institution and with the individual) and strict temporal limitations (a decade). Ultimately, the enveloppe Soleau travels between the material and immaterial, between private and public, between secrecy and disclosure, but also between what we perceive of as the outside and inside of the intellectual property system.


2015 ◽  
Vol 23 (3) ◽  
pp. 5-13 ◽  
Author(s):  
Ewa Kucharska-Stasiak ◽  
Sabina Źróbek

Abstract The economic theory argues that the value of assets, including the value of real property, is influenced by many factors which determine the behavior of operators engaged in market transactions. The knowledge of basic principles and assumptions which underpin the development of value is essential to understanding the methods and procedures of valuation. The thesis, upon which the authors of this article based their theoretical and practical considerations, is formulated as follows: “The knowledge of economic principles of valuation improves the accuracy of valuation and allows for more appropriate interpretation of its results”. Therefore, these factors should be taken into account by appraisers estimating the value of property. Over a dozen so-called key principles of valuation have been formulated in literature. Among them are the principles of anticipation, change, substitution, supply and demand, competition, balance, highest and best use, conformity, and externalities. It is assumed that the most important principle in the valuation of property is the principle of anticipation. Some of the principles are relevant to all the traditional approaches to determining value, while others apply only to selected approaches e.g., the principle of opportunity cost, which is mainly used in valuations using the income approach. The thesis is supported by research results and an analysis of practical examples.


2021 ◽  
pp. 2150041
Author(s):  
YUANZHU LU ◽  
FULAN WU

This paper extends Banerjee and Poddar [Banerjee, S and S Poddar (2019). ‘To sell or not to sell’: Licensing versus selling by an outside innovator. Economic Modelling, 76, 293–304] by lifting the cap on per unit royalty rates in the cases of royalty licensing and two-part tariff licensing. We reconsider the optimal technology licensing contract by an outside innovator facing two heterogeneous licensees in a standard Hotelling framework. Our findings show that the optimal licensing policy could be fixed fee to the efficient firm, or two-part tariff to both firms (pure royalty to both firms), or two-part tariff to the efficient firm, depending upon the cost differentials between the firms and the size of innovation.


Author(s):  
Benito Mignacca ◽  
Giorgio Locatelli ◽  
Mahmoud Alaassar ◽  
Diletta Colette Invernizzi

The key characteristics of small modular reactors (SMRs), as their name emphasized, are their size and modularity. Since SMRs are a family of novel reactor designs, there is a gap of empirical knowledge about the cost/benefit analysis of modularization. Conversely, in other sectors (e.g. Oil & Gas) the empirical experience on modularization is much greater. This paper provides a structured knowledge transfer from the general literature (i.e. other major infrastructure) and the Oil & Gas sector to the nuclear power plant construction world. Indeed, in the project management literature, a number of references discuss the costs and benefits determined by the transition from the stick-built construction to modularization, and the main benefits presented in the literature are the reduction of the construction cost and the schedule compression. Additional costs might arise from an increased management hurdle and higher transportation expenses. The paper firstly provides a structured literature review of the benefits and costs of modularization divided into qualitative and quantitative references. In the second part, the paper presents the results of series of interviews with Oil & Gas project managers about the value of modularization in this sector.


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