Everything has its price! Why not puting a price on your Intellectual Property (IP) as well!
According to WIPO (World Intellectual Property Organisation), more than half of large companies in EU leave their IP outside the scope of internal audits.
Just recently International Acounting Standards have acknowledged (IAS 36 and IAS 38) and provide possibility (to some extent) the ability to include IP in a balance sheet of the company.
Putting a price to organisation's existing IP has important benefits when it comes to:
- IP as Collateral - IP can be used as an collateral when asking for a loan/or guarantee at local bank. As long as valuation is made in accordance to International Accounting Standards (IAS) this might convince your bank to guarantee your much needed loan.
- Licensing opportunities - when entering negotiation with potential licensee or licensor it is crucial to know how much is your IP worth. This enables you to negotiate a better deal.
- Litigation threaths - weather you are a plaintif or defandant you should always know what is a true value of the IP in question.
- Mergers and Acquisitions (M&As) - trademarks, patents and other forms of IPs are the first thing a company should look for (and put value on it) when engaging M&A etc.