Intellectual Property Valuation
Valuation of intellectual property of an enterprise occurs especially in the following cases:
- due diligence;
- transfer of intangible assets to another entity;
- division and merger of companies;
- establishing a company with foreign equity, spin-off company;
- non-monetary contributions to the registered capital of a company;
- pledging intangible assets;
- bankruptcy and settlement;
- for advertising reasons;
- determining reasonable compensation in case of unfair competition and violation of industrial rights;
- concluding licensing agreements;
- technology transfer;
Valuation is carried out by Ing. Jiří Sedlák as a certified expert in the field of economics – valuation of intangible assets (EXPERT OPINIONS) or PatentCentrum Sedlák & Partners s.r.o. as a concession holder for “Valuation of intangible assets”.
There are a number of methods used to evaluate intellectual property, however the most commonly used ones are the so-called revenue methods, e.g. the license analogy method. It is based on the consideration that the value of intellectual property equals the value that the company would pay if it did not own the necessary knowledge or rights and had to obtain them from another entity; thus it would have to conclude a licensing agreement and pay for the subject of the license. The value of intellectual property as intangible assets is determined as the sum of annual discounted royalties for this hypothetical license. The valuation is governed by Czech Act No. 151/1997 Coll., on Valuation of Assets, as amended.