Best tips to boost your Intellectual property valuation

Generally, people are interested in intellectual property valuation when a transaction is imminent. The business may raise capital, sell, license, or enter into a collaborative or joint venture arrangement. We offer you a few tips that will help you take proactive steps now to increase the value of your IP over time.

1. Make sure every employee knows and understands the value of IP.

The first step toward maximizing the value of your intellectual property is capturing it, or, in other words, making sure it does not flounder from the beginning.

2. Choose the most appropriate protection for key products or services.

Decide what type of intellectual property valuation would best protect your product or technology. Patents protect functionality, but you can keep something as a trade secret if you act affirmatively. Consider any competitive advantage.

If your business is more service-oriented, ensure that:

●     Protected your brand name, logo, and jingle

●     Written up your procedures with appropriate copyright statements.

●     Put enforceable restrictions and confidentiality clauses on the key staff.

If you are working with software, ensure you have access to the source code and own the rights to the software.

3. You must identify the strategic priority that each IP item serves.

Spend your money on the most important things to your business strategy. Your IP spend should be focused on items that will help you succeed long-term. Verify that you are not spending money on IP that is no longer relevant in your portfolio.

4. Plan your IP filing strategy properly for the next 3-5 years.

It is imperative to have a clear understanding of your IP filing strategy's 3-5 year cashflow requirements from the start and make provisions to ensure there is free cash to match those expenses.

5. Prepare your IP for due diligence now.

It is time-consuming, distracting, and often costly to carry out due diligence. By undertaking due diligence now, you will be better prepared for future transactions, eliminating value-destroying issues before there is a team of lawyers on your case and giving yourself time to remedy them.  

6. Any time you hire third parties, ensure a written agreement that specifies IP ownership.

Different types of IP rights have different ownership rules. Every country and each IP right has its rights of co-ownership. A patented invention can be used without accounting for other co-owners, but the co-owners cannot sell or license the invention without their consent - that's a handbrake! Joint IP ownership usually destroys value.

7. Develop strategies that will reduce the risk of your IP quickly.

As you lower the associated risks, your IP value increases. They include legal, development and market risks. One market can serve as a signal for other needs. Your potential collaboration partner has little idea whether your patent will be granted or what the claim scope will be.

8. Be mindful of rights to slice and dice

While doing intellectual property valuation, patents can be split in several ways: the right to make, sell and use a patented article can all be licensed separately. One can also license these rights to different people for different applications or fields.