Intellectual Property
Patents, trademarks, copyrights, trade secrets, and certain proprietary assets are classified as intellectual property, a special category of intangible assets. Intellectual property rights are occasionally infringed, and to assess damage claims valuation specialists are commonly engaged to quantify the financial impact of the illegal infringement.
Countries with stronger IP protection produce 50% more innovative output than countries with weaker IP protection
Valuation experts endeavor to determine the useful life of the intangible asset, the portion of income generated by the asset, the price that a buyer would pay for the asset, and a host of other key determinates that affect the present value of the subject intangible asset. There are numerous contingent considerations in the valuation process which include the history of the asset, industry characteristics and pricing specifics, competitive environment, and comparable intangible assets.
There are several methodologies for calculating the financial impact of infringement damages and the specific procedure for any particular engagement is determined by the characteristics of the claim. Described herein are two of the more common techniques. First, the present value of lost income can be determined for the duration of the infringement period, which measures the present value of the lost economic earnings during the infringement period. Economic income is measured because it can include all lost income or cash flows experienced as a result of the infringement, or the hypothetical income that would have accrued to the owner of the asset in the absence of such infringement. Another common method involves measuring the decremental value of the property during the infringement period, which requires a comparative valuation analysis to determine the property value before and after the infringement period.
In addition to directly managing intellectual property matters for large public companies, the principals at Oxburgh Row are experienced at measuring economic damages associated with patent, trademark, copyright, and trade secret infringement, while staying abreast of statutory developments pertaining thereto.