IP Valuation – Why it matters in the Age of the Corona Virus Pandemic

By OxFirst. www.oxfirst.com

ip valuation intellectual property

More than ever before has the current Corona crisis shown that there is a need to invest wisely in technology. Humanity is faced with the necessity to find a cure as fast as possible. Possible approaches range from tracking devices to new vaccines.

In all of these endeavours intellectual property plays a major role. Patents help protect the technology itself, copyright helps protect code and software, trade secrets offer the protection of strategic business information and trademarks help leverage the brand of a firm. These various forms of IP are crucial for a firm to succeed. In particular, it is the congruence of various forms of IP that help a business to succeed.

An IP valuation helps to better understand these business dynamics. OxFirst’s IP valuation consists of an initial due diligence followed by a strategic assessment of the various opportunities provided by the IP to maximize profits. It also helps manage costs, which many companies may find important in the current situation. OxFirst then makes use of various recognized valuation approaches that give insights on the economic worth of IP.

As a result, companies are often in a position to maximize their business opportunities or attract investors. Private Equity, Venture Capital and Business Angels again are in a position to better assess risks and return. An IP valuation can offer insights which are otherwise not available. Translated to the current crisis, this may mean that we may be in a better position to leverage IP in search for a cure for Corona.

An IP valuation is structured into three parts. An IP due diligence, a business assessment of the IP and an in-depth analysis of the role of the IP within the business. Also important is to understand is how the IP can be positioned in relation to forces at work. Such forces at work consist of regulatory challenges, technology challenges, potential new competitive entrants, as well as competitive dynamics in the market.

The assessment of these forces at work helps determine a potential net value for the IP at stake. In doing so, it allows to establish a relationship between the IP and the business environment it is situated in. However, such analysis is not just narrative in character. The valuation of the IP allows to quantify such forces at work. This is an amazing value proposition as it helps understand potential returns and sets them in relation to risk.

Unsurprisingly this allows a firm to reorient its strategy and sets the baseline for the entire business strategy, not just the narrow circle of the IP strategy itself. A firm can be in a position to maximize revenues, while at the same time minimize its costs.

Quite simply, because of the immaterial nature of IP. Trading in intangible assets is a good deal more cost effective than in tangible property rights. Such approaches may also work for firms specializing in a cure for Corona.

IP valuations have a proven track record of success. They have helped companies of various sizes and stages in their lives maximise revenues, while minimizing costs. At the same time, they have helped investors make educated investment decisions. These advantages are immensely valuable in the age of Corona, where we need to assure every Pound is spent wisely. The path to finding a cure to the virus is invariably interlinked with an adequate analysis of the economic impact of intellectual property.