Lilly’s experience offers more evidence that patents are not “indefinite lived”
When Eli Lilly’s patent protection for its antipsychotic drug Zyprexa expired last fall, analysts sought information on how Lilly would make up for the loss of $3B in related revenues. They were comfortable in forecasting 2011 earnings per share of $3.67. In addition, most companies facing the patent cliff force significant reductions in sales expenses [...]
Assessing current and potential IP value—learn from the best!
Early stage value relies heavily on IP. Yet, IP valuation is tricky–there are no comparables in the market, discount rates are not directly observable, competitors can attack protections, and the commercial market may be less than expected. While correctly assessing IP value can lead to remarkable shareholder wealth creation, incorrect valuation can be very costly. [...]
Market data for IP assets? The IP Exchange International hopes so
The IP Exchange International has been around since 2009 without making much of a splash, but it announced some actual partners for the first time yesterday. Philips and Com-Pac International are joined as IPXI founding members by Rutgers University, Northwestern University and the University of Utah. IPXI’s idea is simple; quickly and transparently offer IP rights for licensing purposes [...]
Patent valuations are needed to properly communicate alternative strategies to the C-suite
In a podcast publicized by Legal IQ, Adrian Spillman, Global Head of IP at Intercell, discussed the need to make the tough decisions with respect to patents, and the importance of IP valuation to triaging those patents. Having a good idea of what the income stream from a patent is likely to be allows for the creation [...]
BVR launches IP Management & Valuation reporter
Business Valuation Resources, LLC (BVR) and its IP publishing division are pleased to announce the launch of the new monthly reporter, IP Management & Valuation. BVR recognizes the growing need for regular coverage of intangible asset valuation news. The monthly IP Management & Valuation (IPMV) reporter supports senior executives in the identification, evaluation, protection, and [...]
Lack of comparables tanks $1.3 billion damages claim
The 2010 jury awarded the plaintiff (Oracle USA) $1.3 billion in damages against the defendant SAP, the world’s largest business application software manufacturer. Not only was the award the largest in 2010—and the largest ever for copyright infringement—but it also equaled the defendant’s 4Q2010 net income, according to recent reports. On appeal in 2011, the defendant [...]
AICPA revised IPR&D Aid will expand valuation techniques for acquired R&D
The newly revised IPR&D Practice Aid from the AICPA will significantly expand consideration of various valuation techniques, Tony Aaron (Ernst & Young), co-chair of the AICPA task force that’s revising the Aid, told ASA attendees this week. For example, compared to the 2001 first edition, in which the valuation chapter contained only 70 paragraphs, the revised [...]
New resource for appraisers when valuing IP in bankruptcy
Analysts will find IPmetrics’ review of valuing IP in a bankruptcy context useful. As they have seen in other contexts (e.g., valuing patent infringement damages under the now tighter Uniloc standards), using simple ratios and “rules of thumb” is far less likely to pass scrutiny by a court (and an attorney client) than before. “A specific [...]
Expert reliance on entire market value rule wins one, loses one
Expert reliance on entire market value rule wins one, loses one The law in patent infringement cases is clear: the entire market value rule permits recovery of damages based on the value on an entire apparatus containing multiple features, if the patented feature constitutes the basis for consumer demand. That was the recent holding by [...]
Scenario modeling may help start-up company valuations
Earlier BVWire pointed to a Business Valuation and Advisory Network LinkedIn discussion that pulled over 40 comments responding to an inquiry of how to discount negative cash flows in the early years of an early-stage company. The Valuation Group on LinkedIn simultaneously generated a timely discussion about valuing a start-up with a new patent. Noreen Dornenburg suggested [...]
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