Издательство John Wiley, 2005, -886 pp.
When this book was first published 16 years ago, it was the first work devoted to the valuation of intellectual property and intangible assets. Through the following three editions, we have expanded and refined our presentation, building on our experiences as consultants in the real world of business and valuation. We, separately and together, have authored other books focused on the economic aspects of intellectual property.
This fourth edition is really four books within a single cover, and again builds on our consulting experiences, together with our research and lecturing, and combines that with these books of the John Wiley & Sons Intellectual Property Series:
Intellectual Property: Licensing and Joint Venture Profit Strategies (third edition), Smith and Parr
Intellectual Property Infringement Damages: A Litigation Support Handbook (second edition), Parr
Trademark Valuation, Smith
The contents of these books and the third edition have been extensively updated and revised to reflect the most current thinking in the field. Even some of the basic valuation theory chapters have been revised to reflect what we have leaed in teaching undergraduate and graduate-level courses. We have added a discussion and an appendix covering diffusion and forecasting models available to develop some of the difficult inputs in the valuation of early-stage technology. To make information-seeking easier, this book is divided into four major sections:
Valuation
Licensing
Infringement Damages
Appendices
This edition introduces the concept of the virtual transaction. We think this is a useful way to conceptualize a valuation, licensing analysis, or damages estimate. When we study and opine about these situations, we are, in essence, describing what we believe would have been the results of a transaction that never took place. When we describe the parties to that transaction and the facts surrounding it, we are stating the assumptions we have made to develop our conclusion. Our opinion of the result is what we believe the parties to the transaction would have agreed upon, had they made it.
Ever since we started writing and lecturing a question has been posed about the absence of elaborate case studies in our materials. Many have the desire to observe this sort of information because it provides a road map or recipe for intellectual property valuation, licensing, or damages estimation. The fact is that there can be no case study that covers all of the nuances of a valuation, licensing, or damages analysis. Therefore, we feel it is better not to tempt a reader into thinking that he or she has found a model that will meet all needs. If this were a book on landscape photography, we could describe the types of equipment needed, how camera settings produce different effects on film, and so forth. We could not, however, give the reader a checklist that, if followed, would produce a striking photograph every time. Every scene that the reader prepares to photograph will be unique in some way, and the elements of photographic technique required to capture it will be different as well. All of this is also true for the analysis of intellectual property.
We have observed the intellectual property consciousness that appeared and grew during the 1980s. We saw the beginnings of the e-commerce business model, watched as the bubble grew, and felt its burst. We now are witnessing the incubation of intellectual property in locations all over the world, especially in Asia. The new business model is outsourcing praised by some, decried by others, but further evidence of the development of intellectual property in nontraditional places.
Throughout this period, the crucial importance of intellectual property has grown without wavering. Increasingly, the understanding of intellectual property has become a critical input to business decision making. This growth has fueled a worldwide thirst for knowledge about its role in business and commerce and how its impact can be quantified. We are very pleased that our books have been received so well in the legal, licensing, and financial professions, and that business, professional and govement persons around the world have found them helpful. We maintain our objective of providing practical, practice-based information with enough theory to give the larger picture.
Preface
Part I Valuation
Intellectual Property and Intangible Assets in the World Today
Defining Intangible Assets and Intellectual Property
Defining Intangible Assets and Intellectual Property—Trademarks
Intangible Assets and the Business Enterprise
Accounting Issues
Tax Issues
Valuation Principles and Techniques
Cost Approach
Market Approach
Income Approach—Quantifying the Economic Benefit
Income Approach—Timing and Patte of Receiving the Economic Benefit
Income Approach—Evaluating the Risk of Receiving the Economic Benefit and Putting It All Together
When Theory Meets Practice
Special Valuation Situations
Early-Stage Technology Valuation
Inteational Issues
Part II Licensing
Emergence of Intellectual Property Exploitation Strategies
Introduction to Exploitation Strategies
Economic Contributions of Intellectual Property
Global Exploitation Potential
Risks of Exploitation
Use of the 25% Rule in Valuing Intellectual Property
Licensing Economics and Royalty Rates
Determining a Royalty Rate—An Example
Dealing with Early-Stage Intellectual Property
Trademark Licensing
Licensing Negotiations and Agreements
Licensing Inteet Assets
Another View of Licensing Strategies
Joint Venture
University Technology Transfer
Organizing for the Future
Monitoring License Agreements
Part III Infringement Damages
Lost-Profit Calculations
Royalty Rates and the Georgia-Pacific Factors
The Analytical Approach
Discounted Cash Flow Analysis
Market-Derived Royalty Rates
Trademark Damages
Estimating Damages for Infringement of Agricultural Biotechnology-Derived Products
A Review of Court-Awarded Royalty Rates in Patent Infringement Cases (1990–2001)
Trademark Damage Trends in the Federal Circuit (1982–2001)
Recent Decision: Copyright Infringement Damages Can Be Based on Value of Licenses
Trade Secret Damages
Part IV Appendices
A Investment Rate of Retu
B Theoretical Foundations for the Determination of a Fair Rate of Retu on Intellectual Property
C The Use and Abuse of Iowa Curves When Quantifying Appraisal Depreciation
D Financial and Business Information Sources
E Sample Royalty Rate Information
F Overview of New Product Diffusion Sales Forecasting Models
When this book was first published 16 years ago, it was the first work devoted to the valuation of intellectual property and intangible assets. Through the following three editions, we have expanded and refined our presentation, building on our experiences as consultants in the real world of business and valuation. We, separately and together, have authored other books focused on the economic aspects of intellectual property.
This fourth edition is really four books within a single cover, and again builds on our consulting experiences, together with our research and lecturing, and combines that with these books of the John Wiley & Sons Intellectual Property Series:
Intellectual Property: Licensing and Joint Venture Profit Strategies (third edition), Smith and Parr
Intellectual Property Infringement Damages: A Litigation Support Handbook (second edition), Parr
Trademark Valuation, Smith
The contents of these books and the third edition have been extensively updated and revised to reflect the most current thinking in the field. Even some of the basic valuation theory chapters have been revised to reflect what we have leaed in teaching undergraduate and graduate-level courses. We have added a discussion and an appendix covering diffusion and forecasting models available to develop some of the difficult inputs in the valuation of early-stage technology. To make information-seeking easier, this book is divided into four major sections:
Valuation
Licensing
Infringement Damages
Appendices
This edition introduces the concept of the virtual transaction. We think this is a useful way to conceptualize a valuation, licensing analysis, or damages estimate. When we study and opine about these situations, we are, in essence, describing what we believe would have been the results of a transaction that never took place. When we describe the parties to that transaction and the facts surrounding it, we are stating the assumptions we have made to develop our conclusion. Our opinion of the result is what we believe the parties to the transaction would have agreed upon, had they made it.
Ever since we started writing and lecturing a question has been posed about the absence of elaborate case studies in our materials. Many have the desire to observe this sort of information because it provides a road map or recipe for intellectual property valuation, licensing, or damages estimation. The fact is that there can be no case study that covers all of the nuances of a valuation, licensing, or damages analysis. Therefore, we feel it is better not to tempt a reader into thinking that he or she has found a model that will meet all needs. If this were a book on landscape photography, we could describe the types of equipment needed, how camera settings produce different effects on film, and so forth. We could not, however, give the reader a checklist that, if followed, would produce a striking photograph every time. Every scene that the reader prepares to photograph will be unique in some way, and the elements of photographic technique required to capture it will be different as well. All of this is also true for the analysis of intellectual property.
We have observed the intellectual property consciousness that appeared and grew during the 1980s. We saw the beginnings of the e-commerce business model, watched as the bubble grew, and felt its burst. We now are witnessing the incubation of intellectual property in locations all over the world, especially in Asia. The new business model is outsourcing praised by some, decried by others, but further evidence of the development of intellectual property in nontraditional places.
Throughout this period, the crucial importance of intellectual property has grown without wavering. Increasingly, the understanding of intellectual property has become a critical input to business decision making. This growth has fueled a worldwide thirst for knowledge about its role in business and commerce and how its impact can be quantified. We are very pleased that our books have been received so well in the legal, licensing, and financial professions, and that business, professional and govement persons around the world have found them helpful. We maintain our objective of providing practical, practice-based information with enough theory to give the larger picture.
Preface
Part I Valuation
Intellectual Property and Intangible Assets in the World Today
Defining Intangible Assets and Intellectual Property
Defining Intangible Assets and Intellectual Property—Trademarks
Intangible Assets and the Business Enterprise
Accounting Issues
Tax Issues
Valuation Principles and Techniques
Cost Approach
Market Approach
Income Approach—Quantifying the Economic Benefit
Income Approach—Timing and Patte of Receiving the Economic Benefit
Income Approach—Evaluating the Risk of Receiving the Economic Benefit and Putting It All Together
When Theory Meets Practice
Special Valuation Situations
Early-Stage Technology Valuation
Inteational Issues
Part II Licensing
Emergence of Intellectual Property Exploitation Strategies
Introduction to Exploitation Strategies
Economic Contributions of Intellectual Property
Global Exploitation Potential
Risks of Exploitation
Use of the 25% Rule in Valuing Intellectual Property
Licensing Economics and Royalty Rates
Determining a Royalty Rate—An Example
Dealing with Early-Stage Intellectual Property
Trademark Licensing
Licensing Negotiations and Agreements
Licensing Inteet Assets
Another View of Licensing Strategies
Joint Venture
University Technology Transfer
Organizing for the Future
Monitoring License Agreements
Part III Infringement Damages
Lost-Profit Calculations
Royalty Rates and the Georgia-Pacific Factors
The Analytical Approach
Discounted Cash Flow Analysis
Market-Derived Royalty Rates
Trademark Damages
Estimating Damages for Infringement of Agricultural Biotechnology-Derived Products
A Review of Court-Awarded Royalty Rates in Patent Infringement Cases (1990–2001)
Trademark Damage Trends in the Federal Circuit (1982–2001)
Recent Decision: Copyright Infringement Damages Can Be Based on Value of Licenses
Trade Secret Damages
Part IV Appendices
A Investment Rate of Retu
B Theoretical Foundations for the Determination of a Fair Rate of Retu on Intellectual Property
C The Use and Abuse of Iowa Curves When Quantifying Appraisal Depreciation
D Financial and Business Information Sources
E Sample Royalty Rate Information
F Overview of New Product Diffusion Sales Forecasting Models