E cdip/17/inf/2 original: English date: February 29, 2016 Committee on Development and Intellectual Property (cdip) Seventeenth Session Geneva, April 11 to 15, 2016
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- 11.2 Real World Valuation Problems
- Appendix A Glossary Asset
- Book Value
- Bridge Loan
- Inflation
- Know-How
- Liquidity
- Risk Adjusted Hurdle Rates
- Standard Industrial Classification (SIC) Code
- Working Capital
- Appendix C Sample Royalty Rates
CHAPTER 11 Final Thoughts 11.1 Annual Performance Review Your first year as dean of the Commercialization Institute has been remarkable. As you prepare for your first annual performance review with the university president and the board of directors, you make a list of all that you have accomplished in the first year. You also add up how many things have happened for the betterment of the university’s mission that would not have happened but for the Commercialization Institute. If you have done anything, you have proved the critics wrong. You have done far more than just make the university a small amount of money. The Commercialization Institute has raised the university’s profile both regionally and internationally. The university is now forming collaborations with other research institutes that would have been unheard of a few years ago. You complete the papers for your evaluation and head towards the meeting with the university president and the board of directors confident that the Commercialization Institute has become a permanent fixture on the university’s campus. 11.2 Real World Valuation Problems This Guide has discussed the interplay between intellectual property (IP) litigation and various IP-related business strategies. The Guide began with an overview of various Intellectual Assets and their related exploitation strategies. We followed the first operation year for the Commercialization Institute at the fictional National University of Erehwon. Along the way, we encountered a variety of real-life commercial problems having a valuation component. All the problems that we solved were adapted from real-life scenarios encountered by various technology transfer officers around the world. We explained how each of these problems could be solved in a time optimal manner. Among other things, the Guide has provided a systematic review of various valuation methodologies to offer a guideline for the rapid and systemic evaluation of new technologies. The Guide has further provided practical guidelines to assist universities and publicly-funded research organizations (PRO) to: identify their valuable intangible assets (IA), rank IA by using different qualitative valuation approaches for variable contexts, manage those IA which were assessed as valuable towards strategic collaborations and markets, and commercialize IA with potential market value (determined by application of IP valuation quantitative methods). The Guide has shown through case studies and practical examples how valuation of IA can be used as a solid base for strategic IA management decisions. This Guide has addressed the valuation of both registered and non-registered IP, including patents, trademarks, copyrights, industrial designs, know how, and trade secrets, as well as non-registered IAs such as skilled human capital, innovative processes, management organization etc. Appendix A Glossary Asset – A resource with economic value that an entity (e.g., individual, corporation, country, university) owns or controls with the expectation that it will provide the entity with future benefits. Balance Sheet – A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. Balance sheets give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders. Book Value – The value at which an asset is carried on a balance sheet. Brand/Trade Name – A distinguishing symbol, mark, logo, name, word, sentence or a combination of these items that companies use to distinguish their product from others in the market. Bridge Loan – A short-term loan that is used until a person or company secures permanent financing or removes an existing obligation. Compound Annual Growth Rate – The year-over-year growth rate of an investment over a specified period of time. Copyright – Copyright is a form of protection provided to the authors of “original works of authorship” including literary, dramatic, musical, artistic, and certain other intellectual works, both published and unpublished. The legal rights granted by copyrights differ by jurisdiction. Equity – A stock or any other security representing an ownership interest. On a company's balance sheet, the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses). Also referred to as "shareholders' equity". Goodwill – An account that can be found in the assets portion of a company's balance sheet. Goodwill is an intangible asset that arises when one company is purchased by another company. In an acquisition, the amount paid for the company in excess of its book value usually accounts for the target firm's intangible assets, and goodwill represents the value assigned to intangible assets that cannot be identified with (or is in excess of) fair value assigned to specific intangible assets (e.g., patents, trademarks, customer lists, software, etc.). Inflation – The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Initial Public Offering (“IPO”) – The first sale of stock by a private company to the public. Intangible Asset – The intangible assets owned by an entity (e.g., an individual, company, or university) comprise items such as the technical knowledge (and know-how) of its staff, the competence of its sales force, the business knowledge (and experience) of its management, its goodwill and reputation (including trademarks), the value of its intellectual property (including copyrights and patents), and the commercial value of its licenses. Intrinsic Value – The actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors. This value may or may not be the same as the current market value. Value investors use a variety of analytical techniques in order to estimate the intrinsic value of securities in hopes of finding investments where the true value of the investment exceeds its current market value. Know-How – The practical knowledge of how to complete a process. Liability – A company's legal debts or obligations that arise during the course of business operations. Liabilities are settled over time through the transfer of economic benefits including money, goods or services. Liquidity – A measure of the ease with which an asset can be sold in the market without affecting the asset’s price. Market Capitalization – The complete market value of all of a company's outstanding shares expressed in an amount of currency. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to measure a company's size, as opposed to sales or total asset figures. Net Present Value (NPV) – The difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyze the profitability of an investment or project. NPV analysis is sensitive to the reliability of future cash inflows that an investment or project will yield. Operating Margin – A measurement of what proportion of a company's revenue is left over after paying for variable costs of production such as wages, raw materials, etc. Patent – The grant of a property right to the owner of an invention. The legal rights granted by patents differ by jurisdiction but typically include the right to obtain a court order stopping someone from infringing the patent. Property Rights – Rights granted to the owners of a tangible or intangible object. Examples of property rights include, but are not limited to the right to consume, sell, rent, transfer, exchange, destroy, and/or exclude. Property rights differ by jurisdiction and underlying object. Risk Adjusted Hurdle Rates – Rates used to discount future project costs and benefits. Increased hurdle rates are applied to projects considered to be risky. Shares Outstanding – Stock currently held by investors, including restricted shares owned by the company's officers and insiders, as well as those held by the public. Shares that have been repurchased by the company are not considered outstanding stock. Standard Industrial Classification (SIC) Code – A United States government system for classifying industries. Tangible Asset – An asset that has a physical form such as machinery, buildings and land. Trade Secret – A formula, practice, process, design, instrument, pattern, or compilation of information which is not generally known or reasonably ascertainable, by which a business can obtain an economic advantage over competitors or customers. In certain jurisdictions trade secrets have legal protection. Trademark – A trademark is a word, name, symbol or device which is used in trade with goods to indicate the source of the goods and to distinguish them from the goods of others. The legal rights granted by trademarks differ by jurisdiction. Working Capital – Current assets (such as cash), net of current liabilities, required to keep an organization operational. Appendix B Additional Resources In addition to vast resources and expertise available through various agencies at WIPO, a university or research and development organization may find assistance through the resources of the following organizations:
Appendix C Sample Royalty Rates
Directory: edocs -> mdocs -> mdocs mdocs -> E cdip/14/inf/3 original: english date: september 4, 2014 Committee on Development and Intellectual Property (cdip) Fourteenth Session Geneva, November 10 to 14, 2014 mdocs -> E cdip/9/2 original: english date: March 19, 2012 Committee on Development and Intellectual Property (cdip) Ninth Session Geneva, May 7 to 11, 2012 mdocs -> E wipo-itu/wai/GE/10/inf. 1 Original: English date mdocs -> Clim/CE/25/2 annex ix/annexe IX mdocs -> E cdip/17/7 original: English date: February 17, 2016 Committee on Development and Intellectual Property (cdip) Seventeenth Session Geneva, April 11 to 15, 2016 mdocs -> World intellectual property organization mdocs -> E wipo/int/sin/98/9 original: English date mdocs -> E wipo/int/sin/98/2 original: English date mdocs -> E cdip/13/inf/9 original: English date: April 23, 2014 Committee on Development and Intellectual Property (cdip) Thirteenth Session Geneva, May 19 to 23, 2014 Download 0.72 Mb. Share with your friends:
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