What is intellectual property evaluation?

Definition:

Intellectual property evaluation refers to the evaluation of assets by registered asset appraisers of intellectual property evaluation agencies in accordance with relevant laws, regulations and asset evaluations. Guidelines, the behavior and process of analyzing, estimating and issuing professional opinions on the intellectual property value of an intellectual property evaluation object for a specific purpose on the evaluation base date. There are many intellectual property contents involved in intellectual property evaluation. Generally, intellectual property evaluation is mainly conducted on common intellectual property rights such as trademark rights, patent rights, and copyrights. Why evaluate the value of intellectual property? In the past 15 years, the number of companies that have effectively created, protected, and utilized intellectual property through intellectual property management and become industry leaders has increased significantly. However, there are still many companies that do not fully understand the role of intellectual property in business activities.

The main reason for evaluating intellectual property is to maximize the value of the intellectual property and thereby maximize the value of the enterprise.

The following are the main situations in which intellectual property value assessment is required:

1. Company valuation (transaction, joint venture, merger and acquisition, bankruptcy) Intellectual property rights are a basic component of enterprise value . When buying or selling a company, establishing a joint venture, or doing a merger or acquisition, it is necessary to accurately assess the value of the company's intellectual property. In such a transaction, each party needs to know the value of the intellectual property assets being bought and sold by the relevant business.

2. Transfers and Licensing Before buying or selling intellectual property, it is important to understand its value. Likewise, when negotiating a licensing contract, both parties must also be clear about the value of the patents involved.

3. Pledge financing (bank loans, venture capital) In order to further expand and develop the company, many knowledge-intensive companies will choose to pledge their own intellectual property rights. In recent years, patent pledge financing has received increasing attention. However, some banks are still reluctant to accept this intangible asset due to insufficient knowledge about the valuation of intellectual property. In the future, the pledge of intellectual property, especially patent pledge, will be increasingly accepted, and in this process, the valuation of intellectual property will become an important process. Financing through venture capital is also important for many startups, especially those based on knowledge and technology. When making predictions about possible investments and related risks, investors must also be clear about the value of the intellectual property rights of the companies they invest in and the commercial feasibility of the project.

4. Infringement litigation and settlement In the case of intellectual property infringement or breach of contract, it is also necessary to evaluate the value of the intellectual property to determine the amount of compensation.

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