IP Valuation

IP valuation is the process of determining the economic or monetary value of an intellectual property asset — a patent, trademark, copyright, design, or trade secret. With intangible assets now accounting for over I-Pro Solutions — Service Page Content Catalogue | Page 71 90% of the value of many technology companies, IP valuation has become a critical discipline for financial reporting, M&A; transactions, licensing negotiations, litigation damages, and strategic business decisions. Under Indian Accounting Standard (Ind AS) 38, acquired intangible assets must be recognised on the balance sheet at fair value, making IP valuation a regulatory requirement in many corporate transactions. There are three primary valuation methodologies used globally: the Income Approach (discounted cash flow analysis of the future income the IP is expected to generate), the Market Approach (comparing the IP to comparable transactions — licence fees, sale prices, or royalty rates for similar IP in the market), and the Cost Approach (the cost of creating or replacing the IP). The most appropriate methodology — or combination of methodologies — depends on the nature of the IP, the purpose of the valuation, and the availability of reliable data. Our IP valuation team includes chartered accountants, patent attorneys, and financial analysts with experience across industries. We deliver a detailed valuation report that documents the methodology, assumptions, data sources, and sensitivity analysis. The report is structured to be defensible in regulatory filings, court proceedings, and auditor reviews.

Who Needs This Service?

• Companies recognising intangible assets on their balance sheet under Ind AS 38
• Parties negotiating IP licence agreements who need an arm’s-length royalty rate
• Plaintiffs in IP infringement cases seeking to quantify damages
• Startups seeking investment and needing to demonstrate the value of their IP portfolio