Intellectual Property Valuation and Licensing

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Overview
Case & Project Experience
Associated Professionals

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;
entertainment;
apparel;
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.

Appraisal of patents used in ocular testing devices

The Hemming Morse team appraised patents used in devices used to inspect the eye, with the ability to provide early detection of illnesses and other medical complications. The appraisal was done to help evaluate whether a proposed transaction was at a reasonable price.

Appraisal of copyrights in film footage lost in fire

Hemming Morse appraised copyrights in film footage that was lost in a fire. The footage was for several television, film, and advertising productions, each in various stages of development. The appraisal was used to assist the owner of the film footage and copyrights, as well as the insurance carrier, to arrive at an amount to be paid on the claim.

Appraisal of trademark used in water collection devices

Hemming Morse was hired to act as a neutral appraiser of the value of a trademark used on devices that collect rainwater and runoff and deploy it effectively on the land in the area. The parties to a lawsuit each believed that they owned the rights to the trademark, and the Hemming Morse appraisal was used to assist the parties in resolving their dispute.