Intellectual property is a driver of value in a world with increased importance and reliance upon technology, brands, and proprietary content and methods to create business advantage, as seen in market exclusivity or enhanced market share, price premia, or even cost savings. In this context, Hemming Morse assist clients and their counsel by valuing intellectual property assets—patents, trademarks, copyrights, and trade secrets—for a variety of purposes, including:
- financial reporting, as required under Generally Accepted Accounting Principles and International Financial Reporting Standards;
- assisting buyers, sellers, and others in transactions and financing;
- assisting licensors and licensees in setting royalty rates and terms; and
Hemming Morse professionals have appraised intellectual property and other intellectual assets on hundreds of matters, in a wide range of industries, but with particular emphasis in:
- technology, media, and telecommunications;
- life sciences and healthcare;
- restaurants and hospitality; and
Pulling from resources knowledgeable about accounting principles, economics, finance, surveys, data analysis, licensing practices, and market research, Hemming Morse provides independent appraisals, using valuation approaches such as the income approach, market approach, real option theory, the relief from royalty method, and the asset-based approach. These approaches can be used, where appropriate, under either a going concern, orderly liquidation, or forced litigation premise of value, and employing a variety of standards of value, including fair market value and fair value.
To support decision-making Hemming Morse’s experience and familiarity with license agreements and terms provide support to licensors, licensees, acquirors, sellers, as well as counsel, by identifying royalty rate structures (paid-up royalties, fixed rates, per-unit rates, and running royalties), rates, volume minima and tiers, obligations and rights regarding enforcement, and royalty examinations and testing.