An Interview with Dr Roya Ghafele. Managing Director of OxFirst Ltd. www.oxfirst.com
Dr Ghafele, can you please tell what an IP valuation is and how can it change the scope of an invention and a business?
An IP valuation helps to better understand the business dynamics around IP. An IP Valuation is core to any legal, business or financial decision pertaining to a firm’s technology. Patens, copyrights, trademarks, trade secrets and more broadly also software and data rights offer a firm the opportunity to generate income. An IP Valuation allows to make such a relationship visible.
Dr Ghafele, can you tell me a bit more about the use of an IP valuation in legal disputes?
OxFirst’s IP valuatios help determine determine damages or licensing rates. Litigations, arbitrations and mediations are a very central use case for an IP valuation. OxFirst’s IP valuations have been several times used in legal disputes and have helped the parties to the case come to grips with the economic worth of the IP. I myself offered training to the German Judiciary in IP Valuation and have offered my support to judges so to come to grips with this important part of a case. Many cases do not center around infringement, but around the economic impact of the infringement. Such questions are core to the work OxFirst does.
Dr Ghafele, can you share the method and steps you take to finalise an IP Valuation?
An OxFirst IP valuation consists of an initial due diligence followed by a strategic assessment of the various opportunities provided by the IP to maximize profits. OxFirst then makes use of various recognized valuation approaches that give insights on the economic worth of IP. In legal disputes, one can look at issues such as unjustified enrichment or lost profits, for example. One may also discuss how the IP relates to business success and failures or how it affects cash flows.
Dr Ghafele, how can the results you end up with change and impact a legal case you are instructed on?
In a legal dispute, it can help determine a damage award or an adequate licensing rate. It can also assist with an IP sales or licensing negotiation.
An IP valuation is however also central to a firm’s business strategy. It can allow a company to understand what IP to hold on tightly to and what to license out or in. It is only through an adequate economic analysis that the many business options associated with IP become visible.
Just to give you an example, we recently completed an IP valuation for a high tech venture. With the help of the OxFirst IP valuation, the firm was in a position to launch a new licensing programme. The OxFirst IP valuation was central for the launch of this new venture.
At another instance, the OxFirst IP valuation helped assess the economic risks associated with IP in a M&A transaction. The economic analysis of the IP helped assess any potential anticometitive market situation the merger could trigger and also helped the parties come to grips with the acquisition price.
Dr Ghafele, what impact can the above have on the economy and businesses?
OxFirst’s IP valuations have a proven track record of success. In legal disputes they have been central to coming to grips with damages and royalty rates. Because OxFirst is an economic consultancy, it can offer insights on IP, which are not available when looking at IP for a legal lens.
OxFirst’s IP valuations have helped companies of various sizes and stages in their lives maximise revenues, while being in a position to control costs. At the same time, they have allowed IPR managers make educated strategy choices.
All of these advantages are immensely valuable in the age of Corona, where we need to assure every Pound is spent wisely.
To view the interview click https://www.lawyer-monthly.com/2020/06/why-ip-valuation-matters/
OxFirst. Oxford. U.K.