Patent Valuation

EverEdge are The Patent Valuation Specialists™

 

According to Forrester Research, “U.S. firms annually waste $1 trillion in underused intellectual property assets by failing to extract the full value of that property through partnerships.”

This is based on a market of around 3 million patents in force in the US.

Extrapolate that figure out globally – where the World Intellectual Property Organization estimated that there were around 13.7 million patents in-force in 2017 – and the missed opportunity cost for companies (and economies) not leveraging their patents is almost incalculable.

When it comes to extracting value from intangible asset hard rights – like patents, trademarks, and design rights – many of the issues come down to companies not understanding when these are required, how to accurately value these assets, how patents can be leveraged to maximize value, and how to defend these assets if they are infringed.

EverEdge are specialists in patent and trademark strategy, risk mitigation, rationalization, and valuation. We don’t file patents or trademarks which means our advice is independent.

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Case Study: Nortel - Understanding Where Value Lies

A stark example of the impact that unrecognised value can have can be seen in the Nortel bankruptcy filing in 2009. In this instance, Nortel filed for bankruptcy and its various business units and tangible assets were sold for $3.2 billion.

The last assets to be sold were the company’s 6000 patents, which in a quirk of accounting were recorded on Nortel’s balance sheet at what they cost Nortel – $31 million. While the most ‘frothy’ market estimate of their value was $1 billion, most analyst estimates were far south of this.

These assets were eventually sold for $4.5 billion – 145X the value recorded on the balance sheet – and the patents ultimately were worth more than the value of the entire rest of the company.

A great result for the company’s creditors, but you have to ask whether Nortel would have entered bankruptcy at all if its directors and management team had spent more time actively managing their portfolio of patents and trademarks?

EverEdge are The Patent Valuation Specialists™

Under accounting rules, patents are typically listed at their filing cost them or the cost for which they were acquired. The problem is, in the case of patents in particular, there is virtually no correlation between the cost of a patent and its value.

A patent can turn on a single word (or court decision) and hence you can spend a small (or large) fortune filing for a patent, with its ‘cost’ bearing absolutely no relation to the patent’s actual value.

This is not to say it is impossible to value patents, just that cost-based methods are effectively irrelevant.

EverEdge are The Intangible Asset and Patent Valuation Specialists™.

Our valuations have been accepted by the NYSE, NASDAQ, SGX, ASX, NZX, CATALIST & more; and meet International Valuation Standards Council (IVSC) guidelines.

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Testimonials

We really enjoyed working with Michael and his team and learning more about the Intangible Assets within our Business.

George Gregan, Director

PTP Fitness

We engaged EverEdge to prepare a technical valuation report of a portfolio of patents. The team at EverEdge demonstrated technical expertise and were responsive in the preparation of the report.

Mark Petrucco, Partner

Hall & Wilcox

The EverEdge team brought perspective, context and rigour to the table. This resulted in a valuation report of great value and utility.

Chris Donegan, Partner CRO

Hywin Wealth LLP

Any organisation that is future focused and smart should engage.

Greg Jolly, CEO

Tuapeka Gold Print Ltd

Very professional and focused on our business to find and provide the right outcome

Geoff Wood, Director

East Coast Traffic Control

The EverEdge team we worked with hit the ground running providing great insights into our business and the market we work within – they have added a lot of value to our planning process as we rapidly grow our business.

Mark Maddren, CEO

Ideqa Ltd

The EverEdge Foundation methodology, content and pace were spot on. We found the engagement very rewarding with great insights and takeaway actions from the report.

Mark Maddren, CEO

Ideqa Ltd

During the sale process I was working closely with Craig and the team. Selling a business is always a tough time and I found the EverEdge team extremely professional during the whole process. Nothing was a problem for them and for me this made it a much easier process. They guided me and my team through the whole process and we achieved an excellent outcome.

Ross Pratt, CEO

RAILBLAZA LTD & NTD PLASTICS LTD

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