Valuation of intellectual property

Since the execution of  works on the valuation of intellectual property requires special knowledge and high qualification of the Contractor a specialized enterprise "UVECON-Intelligence" was created in the group of companies "UVECON" in 2008. Positive experience in the intellectual property valuation includes more than 50 completed works.

The concept of intellectual property is revealed by article 418 of book four of the Civil code of Ukraine. According to the National standard No. 4 "Evaluation of intellectual property proprietary rights" the Valuation objects are the intellectual property rights related to the objects in material form.

In accordance with the specified standard property rights to such objects of intellectual property are valued:

  • literary and artistic works;
  • computer programs;
  • compilation of databases (databases);
  • runings;
  • phonograms, videograms, broadcasting organization programmes;
  • inventions, useful models, industrial samples;
  • layout (topography) of integrated circuits;
  • rationalization proposals;
  • plant varieties, animal breeds;
  • commercial (brand) names, trademarks (signs for goods and services), geographical designations;
  • trade secrets;
  • other facilities that, according to the law, relate to the intellectual property rights.

During the valuation process, in most cases, the value of the business and goodwill (business reputation) is determined, after that the value of each individual asset or group of assets is determined. The variant of  valuation of the rights for an object of intellectual property as a separate asset (determination of the license price) is possible.

Each of these actions with intangible assets requires the implementation of valuation procedures:

  • contribution to the Charter capital; determination of the share of property rights;
  • purchase and sale (including surplus assets sale);
  • the use of rights to intellectual property through a license (license price valuation);
  • loan transfer of rights while obtaining a credit;
  • investing in the investment project;
  • privatization;
  • commercial concession;
  • donation;
  • donation of rights;
  • inheritance of rights;
  • accounting in the balance sheet as an intangible asset;
  • valuation for the purposes of international audit (IFRS);
  • the formation of pricing policy;
  • the calculation of taxes, duties, fees;
  • property division, merger, and liquidation of companies;
  • insurance of rights;
  • assessment of damages (lost profits).

Valuation of rights to intellectual property objects (as intangible assets or separate objects) is carried out in the following stages:

  1. Legal examination of the property rights (at this stage the documents which confirm the ownership rights to the object, scope, and validity of these rights are studied);
  2. The determination of valuation methodology in accordance with valuation purpose and available baseline information;
  3. The calculations settlement and determination of the value of rights;
  4. Valuation Report preparation.

To carry out the first phase, that precedes the valuation implementation, the Client provides documents confirming the property right to the object of intellectual property (Certificate of a trademark for goods and services, an invention patent, utility model patent, patent of industrial design, license agreement, etc.). After legal examination the Company prepares for the Client a list of required financial (technical) documentation, which will be the baseline information for valuation process.

As a result of introduction into civil circulation of counterfeit (falsified) products (services) - the rights and interests of intellectual property owners are violated, damage to consumers and state is dealt. Group of companies "UVECON" carries out the valuation of the rights to objects of intellectual property in all variants, and valuation of damage from violations of the rights of intellectual property owners.