Why all brands need an effective intellectual property valuation strategy

 As IP experts, it constantly astounds us that many firms are unaware of their intellectual property's financial and commercial worth. While every organization has a business plan, few have a specific intellectual property valuation strategy. This may lead to IP being seen as merely a cost on the balance sheet. Still, in reality, with the proper IP strategy in place, your IP can provide a meaningful return on investment by establishing a framework for its use and exploitation.

What is Intellectual Property Valuation strategy?

An IP strategy is essentially a well-thought-out plan for acquiring intellectual property, protecting intellectual property (including monitoring and enforcement), and maximizing the value of existing IP assets through exploitation. An IP strategy should be in line with your company's goals and objectives. Because IP is a commercial asset, its worth can only be evaluated and quantified in terms of investment via a specified IP strategy.

Who is in charge of the strategy for IP?

This problem may be solved by taking the time to develop an effective IP strategy that involves all aspects of your company. Involving all critical sections of your business and relevant decision-makers in the creation of your IP strategy will ensure that everyone is on board with the plan and understands the value it will bring to the company. Therefore, your IP strategy should include and evaluate all elements of your organization, including design and marketing teams, legal teams, financial teams, decision-makers, board members, and budget holders. Only in this way can your IP strategy genuinely support and enhance your business objectives.

Benefits of an effective IP strategy:

Return on investment and business valuation:

A successful IP strategy ensures that your intellectual property valuation delivers value to your company. With more and more companies incorporating intangible assets on their balance sheets, your IP will bring substantial value to your company if your resources are put to the most excellent possible use and your IP strategy is followed.

Although protecting intellectual property might appear to be an expensive procedure, a good IP strategy will ensure that only required expenditures are paid and that the value of the resulting IP rights much surpasses the cost, resulting in a positive return on investment.

Safety:

Your IP strategy will secure the preservation and upkeep of your essential assets. Your plan will define the necessary safeguards and monitor and enforce the processes to guarantee that not only is your intellectual property safeguarded, but that money is spent wisely. In addition, a successful IP strategy, which includes detecting, clearing, and protecting new IP, guarantees that you may trade without fear of third-party conflict, preserving your other product and brand expenditures and investments.

Consistency:

Consistency in approach and management of IP is ensured by having an IP strategy in place and communicating that plan throughout the organization. It implies that no money is wasted on ineffective protection but that all-important IP is recognized and secured and that the entire company takes an integrated approach to IP.

Business objectives:

Your valuable intangible assets should be used to support and fulfill the company goals in a solid Intellectual Property Valuation strategy. It isn't easy to demonstrate the value of IP if your IP strategy does not support business goals. Indeed, if the resulting IP does not help your company achieve its objectives, it is possible that the IP purchase was not worth the money, making IP a cost rather than an asset.