IP Valuation: Practical Guide on Effective Methods and Approaches for 2015 and Beyond
In this two-hour LIVE Webcast, a panel of distinguished professionals and thought leaders will help companies better understand the important aspects of this significant topic. They will provide an in-depth discussion of the effective and efficient methodologies and approaches in ensuring a proficient Intellectual Property (IP) Valuation. Speakers will also offer best practices in developing and implementing operative IP Valuation techniques.
Key topics include:
- Intellectual Property – A Brief Overview
- The Valuation Process – A Brief Overview
- IP Valuation for
- Compliance reporting
- IP a subset of intangible assets (IA) – IP is the most “tangible” of the intangibles
- IP has a significant economic impact measured in terms of revenues, profits and market cap
- IP may be valued for reasons including financial and tax compliance reporting, transaction support, litigation and business management
- Although similar valuation methods are used regardless of the reason for the valuation, the way they are implemented can differ depending on the reason for the valuation
- Financial reporting
- ASC 805 – Business Combinations and ASC 350 – Goodwill and Other Intangible Assets are the accounting rules that drive most IP valuations for financial reporting; private companies were recently provided w/ an alternative intended to reduce the burden associated w/ valuing IA including IP.
- Most companies do not maintain or track in the ordinary course of business many of the inputs necessary to value IP.
- Auditors only want what valuation analysts should be giving them anyway.
- The accounting rules driving IP valuation for financial reporting are a missed opportunity for management, investors and creditors because companies are allowed to book it if they buy it but not if they make it, and because they can write it down but they can’t write it up.
- Transaction support
- Unlike valuations prepared for financial reporting or litigation purposes, valuations prepared for IP transactions often consider the objectives of the specific parties and their commercial relationship.
- IP valuations for transaction purposes are often affected by the type of industry and regulations and standards affecting the use of technology.
- An important consideration in IP valuation relates to deal structures that enable risk shifting between the parties.
- The appropriate valuation analysis for a transaction depends on each party’s motivations and the buyer’s intended use of the IP, but valuations for transaction purposes follow recognized approaches – market, income and cost.
- IP valuation in the context of litigation presents additional challenges arising from recent court rulings prohibiting or limiting the use of certain valuation tools.
- The analysis of “comparable” licenses in a litigation context is problematic given recent case law limiting the ability of litigants to rely on general industry license terms or litigation settlements in their analysis of reasonable royalty damages.
- Certain valuation tools, such as the 25 Percent Rule and, to a lesser extent, the Nash Bargaining Solution, are or may be inadmissible in patent litigation matters.
- While parties to a license often agree on license terms involving running royalties based on a percentage of the licensee’s sales of the licensed products, this royalty structure may pose problems in a litigation setting due to recent case law regarding the Entire Market Value Rule (EMVR), which can restrict the royalty base to the “smallest saleable unit”.
Who Should Attend:
- IP Attorneys and Consultants
- IP Valuation Officers and Professionals
- IP Officers
- Multinational Companies
- Private and Public Companies
- Other related/interested Professionals and Organizations
Carla S. Mulhern, Analysis Group Managing Principal, specializes in the application of economic principles to issues arising in complex business litigation. She has served as an expert witness on damages issues in commercial litigation matters, including intellectual property and breach of contract cases. She has provided expert testimony in patent infringement cases in district court and before the International Trade Commission, where she has testified on issues of remedy and domestic industry. Her IP damages experience includes cases involving allegations of patent, copyright, and trademark infringement, as well as misappropriation of trade secrets. In non-litigation matters, she has assisted clients in valuing intellectual property and other business assets in the context of strategic alliances and joint ventures. She holds an M.Sc. in economics from the London School of Economics and Political Science, and a B.S. in mathematics from Bucknell University.
Carla S. Mulhern, Analysis Group Managing Principal, specializes in the application of economic principles to issues arising in complex business …
Phil Green is one of the four founding Principals of Hoffman Alvary. For over twenty years, his practice has focused on intellectual property, valuation and business consulting areas. Throughout his career he has valued technical and other types of intangibles in broad range of industries including: computer software and hardware, pharmaceutical, banking, insurance, automotive and other manufacturers as well as service organizations. His clients have ranged from Fortune 100 companies, to educational institutions and individual inventors and start-up entities. He has testified in trials in state and federal courts on over 40 occasions throughout the country.
Prior to starting Hoffman Alvary in 1996, Mr. Green was a senior manager at Price Waterhouse LLP. Mr. Green is a licensed Certified Public Accountant and an Accredited Senior Appraiser in Business Valuation by the American Society of Appraisers.
Phil Green is one of the four founding Principals of Hoffman Alvary. For over twenty years, his practice has focused …
Chuck Faunce has 19 years of experience providing clients with valuation consulting services including financial- and tax- compliance reporting, commercial damages analysis and expert testimony, and buy and sell side transaction analysis in a broad range of industries. Mr. Faunce has authored hundreds of valuation reports and expert witness reports and has significant experience providing deposition and trial testimony. His expertise includes developing the complex financial analyses required to assess business value and to perform commercial damages and bankruptcy analyses. Chuck also provides pro bono services as an economic evaluator for Maryland Industrial Partnerships, a program at the University of Maryland that enables technology commercialization in Maryland through jointly funded university-company research and development.
Chuck Faunce has 19 years of experience providing clients with valuation consulting services including financial- and tax- compliance reporting, commercial …
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Method of Presentation:
NASBA Field of Study:
Specialized Knowledge and Applications
NY Category of CLE Credit:
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About Analysis Group
Since 1981, Analysis Group has provided expertise in economics, finance, health care analytics, and strategy to top law firms, Fortune 500 companies, global health care corporations, and government agencies. Our work is grounded in a collaborative approach that allows us to effectively integrate the best ideas from leading academic and industry experts with our more than 600 professionals. As a result, our clients receive thoughtful, pragmatic solutions to their most challenging business and litigation problems. Through our work in thousands of cases across multiple industries we have become one of the largest economics consulting firms in North America, with 11 offices in the United States, Canada, and China.
About Hoffman Alvary & Company LLC
Hoffman Alvary & Company is a consulting firm providing independent advisory services to law firms, their clients and other institutions worldwide.
The firm’s Intellectual Property and Valuation Consulting practices assist companies and their counsel in a broad range of areas including expert witness testimony, licensing matters, valuations and general business consulting. The firm’s principals are experienced in determining and testifying to the amount of damages arising from the infringement of intellectual properties, and as well as in analyzing financial, accounting and economic issues in investigations before the International Trade Commission.
The firm’s Law Firm Consulting practice focuses on management consulting to major law firms throughout the United States, Canada, the UK and Europe, and works regularly with nearly half the AmLaw 100 and AmLaw Second Hundred firms in their strategic and tactical considerations.
For more information on Hoffman Alvary, visit www.hoffmanalvary.com.
About Gorfine, Schiller & Gardyn, P.A.
Gorfine, Schiller & Gardyn, P.A. (“GSG”) is a certified public accounting firm offering full service accounting, tax and consulting services to small and middle market clients in a broad range of industries since 1934. The firm seeks to be a trusted advisor to each of our clients and emphasizes the development of deep relationships to achieve that goal. GSG is a member of PKF North America, a network of independent CPA firms with 245 offices.