Intellectual Property lives in a dichotomy – in one sense, patents, copyrights, trademarks and other assets are being created at faster and faster paces, small companies now have an average of ten IP assets, including the brand name, domain names, and other creative property, but larger companies can have hundreds evolving every day. However, the advent of more and more IP is shielded by the need for corporate secrecy. These assets are valuable property, and often carry more value than real property for a company.
However, as IP valuations normalize due to comparative studies and formulas which take all aspects of an idea into consideration, from the application, the industry, the impact and recognition factors, inventories need to be compiled to count, comprehend and keep up with the IP asset growth within a company.
Some IP assets also change value over time – as an idea moves from patent pending status in the examiner’s hands into approved status, the value will naturally increase. AS an asset is licensed to several others, it gains in both value and monetization.
We use a proprietary software program to inventory and track value of an IP asset. Each evolution of an asset is carefully valuated and set into the inventory, which is then provided to the client and the client’s accountants to track how that value impacts the bottom line.