Page 1 of 2 Introduction Trademarks, trade names and brands are vital elements of profitable, growing businesses. With the shift towards a more knowledge-based and service-orientated economy, intangible assets such as trademarks, know-how and technology, account for an increasing part of the business value. Transfer Pricing Associates Valuations helps to determine the value of intellectuals property in today’s rigorous regulatory environment by providing independent and well-supported valuations. Valuation of IP requires specific valuation skills unique to intellectual property rights and assets. Besides relevant knowledge and experience it requires in-depth understanding of the market, the company and its competitors, the financial and non-financial information, as well the legal and regulatory environment. The valuation advice needs the right combination of analysis, experience and judgment. We value all forms of intellectual property and other intangible assets and help to provide you with the right value. The Process The paragraphs underneath decribe the various phases of our valuation process. Phase 1 – Analysis and Definition of IP: the central challenge of the IP Valuations lies in the understanding of the IP. Sometimes the IP, such as a trademarks, is part of a larger group of intangibles known as the 'brand bundle'  which might for example include primary trademark, corporate name & logo, marketing umbrella, worldwide trademark registrations, copyrights, etc. We need to understand whether the IP needs to be valued alone or whether all assets related to the IP will be grouped into a single brand bundle and then valued. The difference between the value of naked IP and a full bundle of brand assets is substantial and affects the time, cost, and effort it takes to value as well as the value conclusions. Phase 2 – Determine IP Contribution: after it is clear what IP needs to be valued, the contribution of the IP needs to be determined. Questions that are relevant are: does the trademark differentiate the product or service with which it is associated? Would others be interested in using the trademark? Would a third party pay a fee to license or use the name? If the answer to all these questions is yes, there is value. Phase 3 – Valuation: determine valuation methods to be used and perform the valuation. The most frequently used method is relief-from-royalty which requires an arm's length royalty rate. A royalty rate can be determined through a royalty rate study. Other common methods are residual return method and excess income method. Phase 4 – Documentation: findings will be documented in a comprehensive written report setting out the conclusion of value. The report aims to provide a clear and operable valuation which is defensible towards various financial reporting and tax authorities. << Start < Prev 1 2 Next > End >>