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 [...]
The selling of Nortel patents: IP value ain’t over until it’s over
Nortel, the bankrupt Canadian telecom company, came closer to disappearing this past week with the sale of 6000 patents to the consortium that includes Apple, EMC, Ericsson, Microsoft, RIM, and Sony. This consortium had a lot of money ($100 billion in cash) to throw at the auction. But Bob Cringely (Cringely on Technology) feels that [...]
Fine-tune your intangible asset value analyses
On September 20th Mary Adams (I-Capital Advisors) will lead the BVR webinar “Analysis of the Intangible Drivers of Company Value.” In this 75-minute program, Adams will cover what every business valuation analyst needs to know in our increasingly knowledge-based economy.
Pellegrino matches asset class with recommended IP valuation method
BVWire attended an excellent presentation by Mike Pellegrino earlier this month. He gave a group of high-level, early-stage IP managers the benefit of his experience in choosing the proper valuation method. Business Purpose or Asset Type Recommended Valuation Method Technology License Royalty rate/profit split determination Capital Formation Integrated DCF and real option model Technology Acquisition Integrated [...]
Intangibles are cool, but don’t forget revenue growth and potential earnings, Damodaran repeats…
In his recent blog post, “From revenues to earnings: Operating, financing and capital expenses,” Aswath Damodaran (Stern School of Business, NYU) opines about the accounting issues in Groupon’s recent S-1 statement such as R&D and customer acquisition costs. “I do know that there are valuation questions that will come up with the IPO, but talking about [...]
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