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.
Types of Intangible Assets
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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™
How intangible assets help drive higher valuations
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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Food Drying Holdings Limited
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 was highly responsive in the preparation of the report.
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Hall & Wilcox
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East Coast Traffic Control
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