How Intellectual Property valuation is Evolving Around Us?

Intellectual assets include both intellectual properties, such as logos, patents, trademarks and licensing, as well as human resources, such as employees. The more formalized and codified intellectual assets are more likely to retain their value in acquisitions.

Documenting employee experiences and methods may help leverage and make those assets highly scale able. If those experiences or methods are known only to the employees, leverage or reuse will be more restrictive and require additional employment agreements to capture those assets.

Five ways Intellectual Property valuation is evolving:

1. Innovation:

Increasingly, businesses operate globally due to new information and communication technologies. SMEs are undertaking international business and trading activities. Innovation is becoming increasingly collaborative, and it transcends borders. The various IP law approaches in multiple jurisdictions present formidable challenges for managing IP assets and enforcing IP rights. Cooperation between IP valuation firms, harmonizing standards and procedures, and collaboration among different stakeholders address these challenges.

2. Technology revolutionizes IP management and enforcement:

A wide range of high-profile sectors, including artificial intelligence, is rife with companies seeking to outperform each other. Innovation also comes from the increased interoperability inherent in communication technologies, platforms, IoT, and automated communication. Patents in the context of standards remain a hot topic. Robots and satellites can produce information that can lead to IP assets, so we must not neglect them. It raises questions of creation, invention and ownership.

3. Intellectual Property is a public issue

Intellectual property is often about protecting private creations, increasingly discussed in public forums. IP will play a critical role in helping to achieve these goals, and it will be essential in enabling innovation and collaboration. In many cases, IP protections appear oppressive. They contribute to transparency and knowledge dissemination. A patent, for instance, encourages inventors to share their inventions more readily. We find it imperative to communicate intellectual property issues to the general public so that political opposition to IP initiatives does not rest upon a lack of understanding.

4. Trade secrets and company data are more valuable

A company's most valuable asset is its knowledge and information. Due to the globalization of trade and the interconnected supply chains, trade secrets and confidential business information are becoming increasingly important. The Roadmap proposes legislative initiatives to protect digital business information.

Questions about data privacy and rights over data arise in increasingly data-driven economies. Data management is becoming more complex as data collection becomes more prevalent and regulations regarding data collection increase. It is common for databases to be monetized and traded all the time regardless of the lack of formal database protection.

5. Intellectual property is itself valuable

Many businesses use intellectual property to gain a competitive edge in commercializing products and services. IP is now recognized as a valuable asset that can generate revenues, improve balance sheets, raise stock values, and serve as collateral. IP trading is on the rise and becoming more innovative each day. Despite the increase in the number of valuation service techniques, standardized international methods remain a challenge because the value of IP depends on its context.