An intellectual property (IP) valuation is often the missing link in communicating to investors, boards and senior decision makers what the value of a firm’s IP actually is. Whilst those with legal, technical and patent knowledge may see this instinctively, putting that value into precise monetary terms arms the firm with a valuable tool from which it can develop business strategies that effectively utilise the firm’s IP. An OxFirst IP valuation combines these various data sources to develop a detailed report. For early-stage companies, in particular, having a study on the table that clearly communicates the IP value proposition can greatly support efforts to source funding.

The patent system can seem antiquated and slow. The corporate focus on IP tends to be defensive, centring on the ability of IP to exclude others from the market. Whilst this is one tool of IP, in many cases the firm’s portfolio can be better utilised by appreciating IP as an object of exchange and a substantial business asset.

OxFirst is able to quantify both individual intellectual assets and entire portfolios into precise monetary valuations. Many are surprised that this can be achieved, but over the last eleven years, OxFirst has developed rigorous and comprehensive valuation approaches that move beyond the basic cost, income and market approaches that are now well-known. Identifying the value proposition of both individual intellectual assets and whole portfolios requires identifying and utilising a range of data. The process of an OxFirst IP valuation is unique in each case, but some commonalities remain. We work closely with the inventor to understand the technology, their innovation and how it works – both from a technical and market perspective. OxFirst also works closely with the patent attorney. Following this, there is a need to review the market, to understand growth trends, potential risks, competitors, and potentially other datapoints such as the litigation and licensing landscapes.

New Opportunities and Success Stories:

Recently, an OxFirst IP valuation was used by an established software company with a substantial international patent portfolio in the context of an equity acquisition worth several hundred million US dollars. The company had around 800 granted patents, with applications made for almost 3,000 more. OxFirst undertook a comprehensive analysis of this extensive portfolio in a very short timeframe to deliver unique, invaluable and defensible insights that made a substantive contribution to the successful conclusion of this transaction, which will accelerate the continued development of the company.

Similarly, an OxFirst patent portfolio analysis enabled a high-technology firm to sell patents worth ¼ its annual turnover, with the OxFirst IP valuation forming the cornerstone of the IP transaction. OxFirst conducted an independent assessment of the patents subject to the transaction and determined an appropriate price for the technology transfer. This work involved a comprehensive due diligence assessment of the IP in question, a study of its technological and legal strength, and a thorough investigation of the market associated with the transaction.

OxFirst also completed a valuation for a scale-up company that developed technologies for extracting precious metals from electronic waste (mobile phones, laptops, etc.) OxFirst valued the patents underpinning this technology and, through this work, was able to lead the company on a path to novel revenue generation. OxFirst developed a licensing programme, determined appropriate licensing rates and assisted with identifying first clients. The valuation also enabled the firm to reassess its worth, supporting its communication with investors and enabling substantial capital to be raised, further supporting the company’s onward growth.

OxFirst’s rigorous and comprehensive IP valuations provide new insights and open new management opportunities for companies seeking to maximise their IP. Our valuations clearly communicate to decision-makers the value proposition of a company’s IP portfolio in precise monetary terms. There’s nothing to lose by having an OxFirst IP valuation but, for companies of all sizes, there is potentially a lot to gain.

For more information about how OxFirst can support you with our IP valuation services, please contact us at info@oxfirst.com.

For a recent discussion of IP valuation for investment, view our webinar: https://oxfirst.com/ip-valuation-for-investment/.