Heinz

576 views

Published on

3rd Technology Commercialization Conferance Amman

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
576
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
13
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Heinz

  1. 1. 31/10/01/11/07 – Valuation of Patents Valuation of Innovative Technologies – License Analogy based Approaches according to Employees‘ Inventions Remuneration Calculation in Germany Heinz Goddar Boehmert & Boehmert
  2. 2. 31/10/01/11/07 – Valuation of Patents IPR Valuation Methods <ul><li>Cost Approach </li></ul><ul><li>Market Approach </li></ul><ul><ul><li>Comparison with relevant “deals” </li></ul></ul><ul><li>Yield Approach </li></ul>
  3. 3. 31/10/01/11/07 – Valuation of Patents Yield Approach <ul><li>Similar to employees’ invention remuneration in Germany </li></ul><ul><li>Methods used for employees’ inventions </li></ul><ul><ul><li>License analogy </li></ul></ul><ul><ul><li>Savings </li></ul></ul><ul><ul><li>Free estimation </li></ul></ul><ul><li>NPV determination similar to lump-sum invention remuneration </li></ul>
  4. 4. 31/10/01/11/07 – Valuation of Patents License Analogy <ul><li>Royalty Rate </li></ul><ul><li>Royalty Base </li></ul><ul><li>NPV determination </li></ul>
  5. 5. 31/10/01/11/07 – Valuation of Patents NPV Determination <ul><li>Time and extent of expected use </li></ul><ul><ul><li>Life time of patent </li></ul></ul><ul><ul><li>Expected turn over </li></ul></ul><ul><ul><li>Business Plan </li></ul></ul><ul><li>Pension formula for determination of NPV </li></ul>
  6. 6. 31/10/01/11/07 – Valuation of Patents “Pension Formula“ for NPV C 1 C 2 C ty NPV = C 0 + ------- + --------- + ..... ---------- 1 + r (1 + r) 2 (1 + r) ty wherein C 0 is the royalty cash flow in the starting year, C 1 in the first year thereafter, and so on, until C ty means the royalty stream in the terminal year of (patent) protected sales. Furthermore, r is the discount rate to be applied, i. e. the average bank interest rate for lending money to be applied, e.g. 10% interest means r = 0.1.

×