HGF has been asked to include intellectual property (IP)
valuation as a topic at its IP in Healthcare Conference on a few
occasions now. So this article sets out to give you a high level
introduction to IP valuation and what you can do to help
yourself.
Why value IP?
Most commonly we tend to think about IP valuation in the
contextof transactions. These may be licences, assignments,
business sales – whether a sale of the whole business or the
issue of shares to a new investor. The transaction might be some
type of securitisation to raise finance. You may also find yourself
having to value IP in the context of transfer pricing, for
instance, where you license IP to an overseas affiliate. In that
case you should discuss the valuation with your accountants to make
sure you satisfy the transfer pricing requirements of the relevant
tax authorities. IP also has to be valued where there has been
litigation in relation to it. There are many cases setting out
