PATENT VALUATION

Patents convey a bundle of rights for the use of technology that can provide a competitive commercial advantage. This advantage may be exploited directly by the owner, licensed to others in exchange for a royalty, or sold outright. Determining a value for patents rights, whether for transaction purposes or tax compliance, is a challenging exercise that depends on a proper understanding of the economic context and contribution of the patented technology to the business. A common mistake is to apply VAE analysts possess the technical subject matter knowledge and valuation experience to assist patent owners and potential licensees or buyers in determining the appropriate value of the patent or patent portfolio.

TRADEMARK VALUATION

Trademarks and related concepts like trade dress serve to distinguish goods and services in the marketplace by identifying the supplier and, thereby, conveying to the consumer certain characteristics and impressions that influence the consumer's purchasing decision. Trademarks are commonly misconstrued as synonymous with brand. But they are but a component of brand, which makes methods designed to measure brand value potentially misleading. Determining a trademark's value depends not only on a proper analysis of the market but also the purpose of the valuation. Constructs that affect value, such as remaining useful life and acceptable valuation methods, may differ depending on whether the valuation is performed for transfer pricing or other tax compliance purposes versus transaction or due diligence purposes. VAE analysts have extensive experience in appropriately valuing trademarks.

COPYRIGHT VALUATION

Copyrights aim to protect particular expressions of ideas while allowing for the free exchange of the underlying concepts. This balance is challenging to achieve and has led to a complex assortment of laws over the years governing what and how ideas are copyrighted. Copyright value depends on a number of factors governed differently under the applicable laws, such as the duration of a copyright and who is entitled to what rights. The issue is further complicated in that an idea can take many forms that seem to overlap but are legally quite distinct. A song, for example, may involve rights to the song writer, rights to the music composition, and rights to the reproduction of recorded versions. A book may involve literary rights to the manuscript and also rights to produce a film, play, or other derivative work. VAE analysts have experience in navigating the complex labyrinth of copyright law and applying the appropriate valuation methods.

TRADE SECRET VALUATION

Trade secrets comprise information that has value to a business by virtue of keeping it confidential. The information can include a formula, pattern, compilation, program, device, technique, or process that offers an economic competitive advantage over competitors who lack such information. Unlike other IP, trade secrets are not protected under federal law. Instead, trade secrets are protected under state law that varies by state per state statute and relevant case law. VAE analysts have experience in identifying trade secrets and applying appropriate valuation methods in accordance with relevant state law.

SOFTWARE VALUATION

Software is an intangible asset that is sometimes overlooked as a valuable asset. In the modern world, software has become indispensible to business operations. Much of the software in operation is embedded in devices and is not easily identified or understood by non-technical persons. Complicating the matter is that businesses often do not recognize the cost to acquire or development software separately from the computers, equipment, or other devices in which the software is embedded. VAE analysts have the technical and valuation experience to identify software assets and apply appropriate valuation methods to determine the value such purposes as licensing, asset purchases, recognition of software as part of a business acquisition, or investor due diligence.

OTHER INTANGIBLE VALUATION

VAE analysts have experience in identifying and valuing a wide variety of intangible assets. Representative examples of other intangible assets include:

BUSINESS VALUATION

VAE valuation analysts perform valuations of public and closely-held business ownership interests, securities, and business assets. Our analysts apply appropriate methods to adjust the value in accordance with the level of ownership control represented by the interest, the marketability (or lack thereof) of the business interest, the competitive environment of the business, industry conditions, and the macroeconomic environment, among other factors. Our analysts have performed the following types of business entities and assets: close corporation business enterprise, close corporation fractional interests, public corporation divisions/subsidiraries, complex capital structures (various clases of common and preferred stock, options, warrants, etc.), general and limited partnership interests, limited liability partnerships, joint ventures, proprietorships, professional services corporations, professional practices, and limited liability companies.

EARLY-STAGE BUSINESS VALUATION

Early-stage and startup companies reflect a special class of business. These businesses typically have fewer customers and a shorter, less stable track record of revenue and profit, unlike more mature companies. They often rely on novel or commercially unproven concepts. Accordingly, there are fewer market indicators with which to compare an early-stage or startup business, and any income projections are often less reliable than companies that have survived to execute a successful initial publc offering. VAE analysts are experienced in dealing with the increased level of uncertainty by applying stochastic analysis and other methods. Exemplary methods include business life cycle analysis, Bayesian analysis, and Monte Carlo simulation. Valuations based on a more rigorous accounting of the factors and challenges confronting businesses in the early-stage and startup environment are ordinarily more credible to potential investors and other reviewers, particularly when conventional approaches to valuing businesses are less reliable under the circumstances.

IP LITIGATION

IP litigation often involves damages analysis related to infringement of IP rights such as patent infringement and trademark infringement. It can also involve other claims such as trade secret misappropriation and breach of contract related to the use, development, commercialization, or nondisclosure of IP. VAE experts apply appropriate methods of IP damages analysis to support a credible economic damages opinion. Such damages may include lost profits or other measures of plaintiff's actual loss, defendant's profits or other measures of unjust enrichment by the defendant, and/or a reasonable royalty.

COMMERCIAL LITIGATION

Commercial litigation involves disputes over agreements and other business matters as distinguished from IP-related litigation. Exemplary claims include breach of contract, breach of fiduciary duty, breach of noncompetition covenant, unfair competition, dissolution of a corporation, business interruption loss, and loss due to fraud or misrepresentation. VAE experts apply appropriate economic and forensic accounting methods to determine plaintiff's lost profits, unjust enrichment to the defendant, cost to restore, dimunition of busines value, or other measures of economic damages.