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A corporation is looking to acquire another business. A board of
directors wants to understand the value of a patent. A law firm is
representing a client who claims their patents were infringed upon by a
competing business. All of these circumstances represent situations
where a patent valuation is necessary. Understanding the patent's worth
in all three cases helps communicate a company's overall worth. FASB
Accounting Standards Codification ASC 805 (formerly FASB 141) requires
disclosure of all patent values during acquisitions. Understanding the value of patents, along with the value of other intangible and tangible assets provides an accurate representation of a company's total worth.
This value, whether it is needed by a board of directors or an
individual CEO of a privately held company, is an important element in
various situations. As technology continues to evolve, more businesses
are seeing a competitive advantage to patenting their technology. This
highly competitive world has resulted in more patent infringement
cases, where patent valuations have become even more important. In
order to prove loss of income and the level of infringement, a patent
valuation is required.
Not only are patent valuations necessary for corporations, but they
are also important for law firms and accounting firms that represent
these businesses. No matter a company's size, their situation, or the
industry they are in, Appraisal Economics can provide experienced patent valuation services.
As an internationally recognized leader, Appraisal Economics offers
accurate valuations of patents and other independent valuation services
using experienced and proven methodologies. Please take a moment to
learn more about our business valuation services or feel free to contact us at anytime with any questions you may have.
Assessing A Patent's Value
With all the factors that could potentially affect the valuation of
patents, it's important to understand the valuation methodology.
Appraisal Economics utilizes proven methods gained from years of
experience, in order to ensure an accurate, objective patent valuation
delivered in a timely manner. Our approach begins by working closely
with a company's management team to gain a full understanding of the
company's technology and financial projections. Investigating and
analyzing the company's technology allows us to compare it to similar
technology within the industry. During these comparisons we are looking
for instances where the technology may have been licensed. Our next
step in the patent valuation process is to begin a detailed analysis of
the future financial prospects for the technology. Our financial
analysis includes development of all assumptions and valuation models
necessary to determine the fair market value of the patent. Our
experienced professionals rely on a close working relationship with
clients when performing a valuation of patents. This relationship is necessary to form an accurate and objective patent value report.
Patent Valuation Leaders
Appraisal Economics understands that a patent valuation must be
accurate and on time. We meet or exceed relevant industry standards
while also adhering to our own internal review process. Clients expect, and we deliver, a
high-level of service. That's why we also provide litigation support. Many of our key team members have been expert witnesses during high pressure litigation proceedings.
Despite the many complexities facing the valuation of patents,
Appraisal Economics has experienced professionals capable of handling
your patent valuation needs. Please contact us with any of your appraisal needs, and take a moment to view our other available services, including solar power valuation.
Additional Information from Appraisal Economics
Cost Segregation
Fairness Opinion
Trademark Appraisal
Equipment Valuation
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