Many companies’ most valuable assets are patents, trademarks, copyrights, and trade secrets. Recent studies have found that intellectual property and intangible assets comprise over 80% of S&P 500 company value, compared to below 20% in the 1970s. Engaging in transactions, such as acquisitions and license agreements, with appropriate values and terms is often critical to shareholder value. Moreover, properly recording and reporting intellectual property values in company financial statements is important to understanding the company’s financial position. However, these valuations can present challenges as intangible assets are typically complex and their values can swing with important factors such as validity, competition, and market opinion and reputation, having the potential to cause intellectual property to go from being of minimal value to great value and back again. In this context, pursuing or defending against misappropriation or infringement claims can become make-or-break events for companies and others involved in such disputes.
Hemming Morse’s team is made up of experts with deep experience in a wide range of specialty areas relevant to our analyses. These include:
- Appraisal of intellectual property assets and companies in which intellectual property is a significant part of their value
- Calculations and research in support of license negotiations
- Accounting and disclosures under Generally Accepted Accounting Principles and international accounting standards
- Royalty examinations and investigations of contract compliance
- Consultation on trade secret protection processes
- Large-scale data, statistics, and forecasting
- Market research and coordination with survey and technical experts
- Economic analysis of damages in intellectual property disputes
- Development of schedules and graphics to clearly communicate complex issues
- Testimony at trials or other proceedings
Our work relating to intellectual property requires thoroughness and attention to detail, considering information instructive to issues such as licensing rates and terms, design-around and non-infringing substitutes, objective indications of consumer demand (e.g., surveys and conjoint analyses), price erosion, marketing of products and features, product and company sales and profitability reports from accounting systems, acquisitions and mergers, and apportionment of value between infringing and non-infringing elements. We dig deep to fortify our opinions and conclusions with data and investigation, complemented by our experts’ experience and diverse resources across the firm.