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What is your Intellectual Property Worth? Methods for Determining Value
1. What Is Your Intellectual Property Worth? Methods for Determining Value Presented by: Weston Anson CONSOR Intellectual Asset Management 800.454.9091 www.consor.com 25 th National CLE Conference Vail, Colorado January 5, 2008 ®
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6. Context of the Valuation IP Value is Context Specific: Brand/TM Patent/Technical IT/Software Joint Venture or Sale Litigation Internal Development Licensing External ®
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11. Case Study #1 After-market parts supplier Litigation Lost profits Disgorgement of profits Loss in business value Reasonable royalties Copyright infringement Revenue projections Discounted cash flows Income Approach Company: Context: Components: Cause: Approach: Concept of Value: ®
12. Case Study #1 (cont.) $ 25,000 NA Alternative reasonable royalties $ 450,000 $ 45,000,000 TOTAL DAMAGES 150,000 20,000,000 Loss in business value NA 10,000,000 Lost profits $ 300,000 $ 15,000,000 Disgorgement of profits Rebuttal Plaintiff Category ®
13. Case Study #2 Food Manufacturer Litigation Lost royalty income Brand valuation Trademark infringement Revenue projections Discounted cash flows Income Approach Relief from Royalty Company: Context: Components: Cause: Approach: Concept of Value: ®
14. Case Study #2 (cont.) $ 35,000,000 $ 38,250,000 4.5% $ 850,000,000 Retail Food $ 185,000,000 $ 50,000,000 BRAND VALUATION $ 52,875,000 $ 14,625,000 LOST ROYALTIES NA 1.5% Royalty rate $1,825,000,000 $ 975,000,000 Infringing sales Total Foodservice Category
15. Case Study #3 Auto parts manufacturer Litigation Lost profits Reasonable royalties Breach of contract Trademark infringement Revenue projections Discounted cash flows Income Approach Company: Context: Components: Cause: Approach: Concept of Value: ®
16. Case Study #3 (cont.) $ 1,415,000 635,000 0 $ 360,000 420,000 Plaintiff $ 695,000 1,250,000 (1,310,000) $ 540,000 215,000 Rebuttal $ 720,000 TOTAL DAMAGES (615,000 1,310,000 Unjust enrichment (post- termination) Less: mitigation $ (180,000) 205,000 Breach of contract Counterfeit units Lost Profits: Variance Category
17. Case Study #4 Conglomerate Litigation Valuation of stock distribution Valuation of dividend income Valuation of payments Valuation of retirement benefits Trademark infringement (Celebrity) Discounted cash flows Income Approach Enterprise Valuation Company: Context: Components: Cause: Approach: Concept of Value: ®
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