Licenses and assignments of intellectual property rights are common operations in the technology markets, as well as the use of these types of assets as loan security.
of financial valuation of intellectual property, since knowing the economic value of patents is a critical factor in order to define their trading conditions.
There are several business situations where valuation is required:[2] Most of the technological companies are highly based on intangible assets and investment in knowledge, research and innovation.
As in other business transactions, organizations negotiating agreements to sell or license intellectual property and patent rights commonly have to agree on a price.
Several studies reveal that, in particular, owning patents and a proper intellectual property management play a crucial role in the decision of venture capitalists.
The patent (option) will have value to the buyer (owner) only to the extent that the expected price in the future exceeds the opportunity cost of earning just as much in a risk-less alternative.