A new edition of the trusted book on intellectual propertyIntellectual Property simplifies the process of attaching a dollar amount to intellectual property and intangible assets, be it for licensing, mergers and acquisitions, loan collateral, investment purposes, and determining infringement damages.Written by Russell L. Parr, an expert in the valuation/intellectual property field, this book comprehensively addresses IP Valuation, the Exploitation Strategies of Licensing and Joint Ventures, and determination of Infringement Damages. The author explains commonly used strategies for determining the value of intellectual property, as well as methods used to set royalty rates based on investment rates of returns.This book examines the business economics of strategies involving intellectual property licensing and joint ventures, provides analytical models that can be used to determine reasonable royalty rates for licensing and for determining fair equity splits in joint venture arrangements.Key concepts in this book are brought to life by presenting real-world examples of exploitation strategies being used by major corporations. Provides practical tools for and examines the business economics for determining the value intellectual property in licensing and joint venture decisionsPresents analytical models for determining reasonable royalty rates for licensing and for determining fair equity splits in joint venture arrangementsProvides a detailed discussion about determining intellectual property infringement damages focusing on lost profits and reasonable royalties.
RUSSELL L. PARR, CFA, ASA, is President of Intellectual Property Research Associates (www.ipresearch.com). He is an expert in determining the value of intellectual property. Mr. Parr's books about intellectual property value and management are published in Japanese, Korean, Italian, and English. He is dedicated to the development of comprehensive methods for accurately defining the value of intellectual property.
About the Author xiPreface xiiiAcknowledgments xviiPart I Introduction 11 Intellectual Property Is the Foundation of Value 32 Intellectual Properties Defined 203 Intangible Assets Defined 404 Business Enterprise 54Part II Valuation 655 Valuation Principles 676 Cost Approach 757 Market Approach 878 Income Approach, Identifying Economic Benefit 959 Risk-Adjusted Income 11310 Valuation Errors 13011 Early-Stage Technology Valuation 14212 Special Valuation Situations 155Part III Exploitation 17513 Exploitation Strategies 17714 More on Exploitation Strategies 18715 Licensing, Negotiations, and Agreements 21316 Royalty Rates for Licensing 23717 Use of the 25% Rule in Valuing Intellectual Property 27218 Determining a Royalty Rate—an Example 29119 The Magnitude and Meaning of Royalty Misreporting 30520 Patent Aggregators 31321 University Licensing 32622 Joint Ventures 33823 Intellectual Property Audit and Management 35224 Organizing for the Future 37225 Transfer Pricing 384Part IV Infringement Damages 40126 Lost Profits 40327 The Entire Market Value Rule 43428 Royalty Rates and the Georgia-Pacific Factors 44829 Evolving Patent Damages 47130 Trademark, Copyright, and Trade Secret Damages 484Appendix A Accounting 496Appendix B Economic Benefit, Timing, and Pattern 507Appendix C Royalty Rate Data 530Appendix D Risk and Uncertainty 598Index 619