Introduction

Intellectual property (IP) assets such as patents, trade marks, designs or copyrights are increasingly important to many companies. Renting (Licensing) and Buying or Selling (Assignment) of intellectual property rights have become familiar in the market, and the use of these types of asset as loan collateral has grown. This new reality has given rise to the growing importance of valuation of intangibles. Renting, buying and selling an asset requires knowing its value.

Why You Should Care About Valuation of Intellectual Property?

Knowing the economic value of your intellectual property rights will help in your commercialisation process.

There are many business situations where valuation is required:

1. Negotiations to buy/sell or license intellectual property rights.
2. Fund raising through bank loans or venture capital. A proper IP management play a crucial role in the decision of venture capitalists.
3. Valuation of a company for the purposes of a merger, acquisition, joint venture or bankruptcy.
4. Accounting and taxation purposes.
5. Quantification of damages in situations of conflict, such as court proceedings or alternative dispute resolution mechanisms (such as arbitration).

How Tee Intellectual Property (TEEIP) Help You?

At TEEIP, IP Valuation is a team effort, involving several staff members with legal, technical, financial, marketing and strategic expertise.

The Significance of Intangible Assets Today

The value of intangible assets have grown exponentially today, compared to 35 years ago. Brands, trade secrets, client lists, codes, data, industrial know-how and different types of intellectual property rights—form a substantial part of a company’s value. However, due to the nature of intangible assets which are commonly not reflected within profit and loss accounts and are usually off the balance sheets—they are not properly valued and accounted for.

Tangible Assets Vs Intangible Assets

Companies can easily track the value of tangible assets such as brick-and-mortar properties and company-owned cars, but fail to recognize the worth of their intangible assets, which may lead to underlying risks and loss of opportunities. Today’s accounting standards fail to take into account the hidden worth of intangible assets. In stark contrast with tangible assets, failure to measure the worth of these assets will amount to failure in managing them.

We are undoubtedly living in an internet-driven, online generation.  With the increasing amount of intangible assets being part of a company’s value, companies are putting themselves at risk which may potentially affect earnings and performance.

The inability to properly protect your important intangible assets and trade secrets may lead to thievery and unwanted manipulation by third parties. Failure to prove ownership of important assets may also lead to serious repercussions such as brand infringement and may put yourself at risk of patent litigation.

The Significance of Valuation & Registration of Intangible Assets

Tee IP has a wide-range of services which include valuation and registration of your critical intangible assets. If you are wondering when you should start valuing these intangible assets, the answer is as early as possible—where risks can be significantly reduced.

At Tee IP, we believe that an accurate valuation of intangible assets are crucial for both company and investors, to fully maximize your return on investment. Our promise to our clients is to ensure that the actual value of their assets are well-accounted for within their business valuation. Depending on your needs, we can provide full business valuations or valuation on individual intangible assets.

In order to uncover your company’s true value and potential, you must first:-

1. Identify the types of intangible assets you own;
2. Determine if they are properly protected;
3. Determine the value of these intangible assets;
4. Determine the strategies on how to fully maximize them to support your business goals; and
5. Determine the source of your company’s competitive edge.

Whether you are a start-up, a multi-national company, or a potential investor, we will be able to assist you to correctly value and protect your valuable intangible assets. We hope to help you to leverage your intangible assets to increase your company’s competitive edge, boost performance and yield higher investment returns.