16 / July 2010

Pellegrino chairs BVR Summit on IP valuation; final agenda announced

Posted in: BVWire News Written by: David
Categories: case law analysis economic damages & lost profits intangibles intellectual property practice management and growth transfer pricing

Plan now to join us in Chicago Sept 15-16 and grow your intellectual property valuation business.  Here's the final program, including the industry-leading faculty and topics.  Register here.

Wednesday, September 15, 2010

8:00 a.m. – 8:30 a.m. Opening Remarks: Analyze, Defend, and Maximize IP Value

Featuring:                        Mike Pellegrino (Pellegrino & Associates)

Conference chair Mike Pellegrino (the author of BVR’s Guide to Valuing Intellectual Property) will initiate the Summit with his unique perspective on the primary importance of patents, trademarks, copyrights, brands, and trade secret assets in corporate capital structures now, and what they mean for the financial analysts, appraisers, lawyers, and IP owners who must analyze, defend and maximize intangible asset value.  Intangibles dominate balance sheets, so the methods and standards of valuation are critical, and filled with opportunity.

8:30 a.m. – 10:00 a.m. Standards and Risks for IP Value:  The International Perspective

Featuring:                         Thayne Forbes (Intangible Business Ltd.), Jackie Maguire (Coller IP Management)

This session will introduce current—and proposed—U.S and international standards for valuing intellectual property.  The speakers will discuss case studies in applying the standards internationally, with a focus on points of conflict in both regulation and valuation practice

10:00 a.m. – 10:15 a.m. Break

10:15 a.m. – 11:15 a.m. Keynote Address: IP Valuation and Management and their Impact on Shareholder Value

Featuring:                        Michael Friedman (Ocean Tomo)

In his keynote address, Michael Friedman will discuss the empirical connections between IP value and shareholder value.  Friedman’s leadership as a manager of, and an investor in, IP assets provides a unique perspective on the affects of IP on overall entity value—both positive and negative.

11:15 a.m. – 12:15 p.m. How Prudent Management of IP is Dependent Upon Sound Valuation

Featuring:                         Daniel Steinert (Ocean Tomo), Patrick Sullivan (ICMG LLC)

Intellectual properties and intangible assets are often the drivers of a firm’s value and growth, putting prime importance on the management of those assets.  And since start-up ventures often have little else other than their IP, credible valuations affect business strategy, competitive responses, subsequent capital acquisition, and even business survival.  In this session, Daniel Steinert and Patrick Sullivan describe current best practices in IP management, and how recent trends are offering new sources of revenue and asset value.

12:15 p.m. – 1:15 p.m. Lunch

1:15 p.m. – 2:30 p.m.

Breakout A: Roles in Valuing IP: A Case Study

Featuring:                         Jimmy Nguyen (Wildman Harrold), Ron Laurie (Inflexion Point Group), Robert Reilly (Willamette Management Associates), David Ruder (RPX Corporation)

The valuation of intellectual property often involves many parties assessing the same assets from many different points of view.  In this session, the viewpoints of the appraiser, IP manager attorney, and financier will be shown by Robert Reilly, Ron Laurie, Jimmy Nguyen, and David Ruder, respectively, in a mock valuation of an intellectual property.  See the valuation process as never before as these four top experts provide a complete view of the many conflicting priorities and expectations.

Breakout B: Transfer Pricing of IP Assets

Featuring:                         Wes Cornell (Ceteris), Vinay Kapoor (Duff & Phelps)

Transfer pricing always invites scrutiny from auditors, regulators, and particularly from international tax authorities. When start-up or other IP is a material part of a transfer pricing analysis, the risks of unfavorable audits multiply.  How can appraisers and financial managers best document IP assets to fend off challenges?   What specific steps are needed to ensure that those IP assets are valued defensively?  In this session, Wes Cornell and Vinay Kapoor, two of the country’s best in transfer pricing, will address the challenges inherent in establishing fair and transparent transfer pricing values—challenges from existing and emerging regulations, changing methodologies, and varying audit standards.

2:30 p.m. – 2:45 p.m. Break

2:45 p.m. – 4:00 p.m.

Breakout C: Monetizing IP Assets to Increase Shareholder Value

Featuring:                         Mike Pellegrino (Pellegrino & Associates), Ron Laurie (Inflexion Point Group), Suzanne Harrison (Gathering2.0)

IP creates value in many ways—licenses, new product development, competitive advantage, and royalties are just the beginning.   The recent Bilsky decision has just opened one new source of patent value, but there are many others. This all-star panel will example the best practices in monetizing, and valuing, these many potential income streams.

Breakout D: Patent Damages:  Managing the Risks and Contingent Costs

Featuring:                         Rick Bero (The BERO Group), John Bone (Stout Risius Ross, Inc.)

As damage awards from patent infringement lawsuits have increased both in size and numbers, the importance of maximizing the protection of patented technology, or, conversely, of minimizing the financial consequences of patent litigation, have become an increasingly crucial aspect to the success of virtually every business. Key issues considered by Bero and Bone include:

  • Identifying and understanding the advantages or benefits of the patented technology
  • Lost profits
  • Panduit factors
  • Entire Market Value Rule
  • Reasonable royalties
  • Hypothetical negotiation
  • Georgia-Pacific factors

4:00 p.m. – 5:00 p.m. The Critical Intersection of IP Valuation and Fair Value for Financial Reporting

Featuring:                         Mike Pellegrino (Pellegrino & Associates), Bryan Benoit (Grant Thornton LLP), William Johnston (Empire Valuation)

Appraisers working to adhere to “FAS 157” and its interpretations have found that quantifying the “highest and best use” of intangible and intellectual properties has a dramatic impact on valuations for purchase price allocation, impairment testing, share-based compensation, and portfolio investments, In this session Bryan Benoit and William Johnston will review these challenges, how to respond to auditors and others (and what inputs support valuation judgments), and the best methods for adhering to FASB regulations. Moderated by conference chair Mike Pellegrino.

5:15 p.m. – 6:00 p.m. Networking Reception--Meet the Experts

Thursday, September 16

8:30 a.m. – 9:30 a.m. Navigating Legal Minefields in IP Valuation: New Case Law

Featuring:                         Lisa Brownlee, Jimmy Nguyen (Wildman Harrold)

As IP law continues to evolve, it creates opportunities as well as risks.  In this session, two industry leaders will discuss some common legal risks that arise during the IP valuation process, the impact of recent case law and IP legal developments on process for identifying and valuing IP assets, and practical tips for avoiding these minefields.  Among other IP topics, they will cover:

  • How the Supreme Court decision in In re Bilski/Bilski v. Kappos will affect IP valuation
  • Recent cases involving patent damages and patent marking
  • Cases impacting valuation of copyright and trademark assets
  • Exposure of trademarks and Internet domain names to involuntary seizure and the impact on IP portfolio value

9:30 a.m. – 10:30 a.m. IP Valuation Research: Defending Your Conclusion of Value

Featuring:                         Robert Reilly (Willamette Management Associates)

Whether the IP valuation is performed for commercialization, taxation, financing, accounting, litigation, or other purposes, the valuation analyst should consider the following components of defending the value conclusion:

-       Understanding and documenting the analysis assignments

-       Defending the selection and analysis of historical data

-       Defending the reliance on prospective data

-       Defending the valuation analysis

-       Defending the valuation report

10:30 a.m. – 10:45 a.m. Break

10:45 a.m. – 11:45 a.m. Early Stage Valuation

Featuring:                         Chris Bakewell (Duff & Phelps), Ron Seigneur (Seigneur Gustafson LLP)

This session will explore the attributes and nuances associated with the evaluation of intellectual property rights in development stage enterprises and in situations where the IP itself is not fully developed.   Early stage IP valuations are required for transactions, transfer pricing, financing and securitization and collateralization purposes and litigation support.

  • Valuation of an invention prior to commercial exploitation
  • Distinguishing early stage characteristics between
    • Creative ( e.g., trademarks, copyright, computer software); and
    • Innovative ( e.g., patents, industrial designs, trade secrets)
    • Early stage methodologies and related data sources

11:45 a.m. – 12:00 p.m. Where Do We Go From Here?  Conference Summary and Conclusions

Featuring:                         Mike Pellegrino (Pellegrino & Associates)

 

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