Intellectual Property: Valuation, Exploitation and Infringement Damages

Companies are increasingly looking to their intellectual property as a profit center. This book is designed to simplify the process of attaching a dollar amount to intangible assets be it for licensing, mergers and acquisitions, loan collateral, or investment purposes. The "2009 Cumulative Supplements" provides practical tools for evaluating the investment aspects of licensing and joint venture decisions. Also, it discusses the legal, tax, and accounting practices and procedures related to such arrangements. Accountants, business appraisers and executives, valuation/trademark specialists, and licensing executives will benefit from this book.

Table of Contents:
PREFACE. PART I VALUATION. CHAPTER 1A INTELLECTUAL PROPERTY LANDSCAPE (NEW). 1A.1 80% of Corporate Value Is Intellectual Property and Intangible Assets. 1A.2 Over Seven Million Patents. 1A.3 Corporations Own the Most Patents. 1A.4 All Industries Are Patenting Inventions. 1A.5 Trademarks. 1A.6 Trademarks Are Supported with Huge Ad Spending. 1A.7 Copyrights. 1A.8 Trade Secrets. 1A.9 Business of Licensing. CHAPTER 1B U.S. CONGRESS FLIRTS WITH DISASTER (NEW). 1B.1 Patent Litigation Venue. 1B.2 Patent Infringement Damages. 1B.3 Injunctions for Only Competitors. 1B.4 Harming Our Only Economic Advantage. CHAPTER 12A RISK-ADJUSTED CASH FLOWS (NEW). 12A.1 Required Rates of Return. 12A.2 Capital Asset Pricing Model. 12A.3 Build-Up Method. 12A.4 Venture Capital Rates of Return. 12A.5 Probability of Success. 12A.6 Conclusion. CHAPTER 12B DEALING WITH RISK AND UNCERTAINTY IN INTELLECTUAL PROPERTY VALUATION AND EXPLOITATION (NEW). 12B.1 Risk versus Uncertainty. 12B.2 Decision Analysis and Decision Trees. 12B.3 Decision Tree Components and Conventions. 12B.4 Monte Carlo Techniques. 12B.5 Markov Chains. 12B.6 Obtaining Information from Indirect Observation: Shadow Pricing. 12B.7 Bayesian Analysis. 12B.8 Option Pricing Models. 12B.9 Limitations on Rationality in Decision Making: The Effects of Perception and Biases on Decision Making. 12B.10 Conclusion. CHAPTER 14A RIGHTS OF PRIVACY, PUBLICITY, AND CELEBRITY PERSONA (NEW). 14A.1 Introduction. 14A.2 Legal Underpinnings. 14A.3 Trademark Rights. 14A.4 Copyright. 14A.5 Legal Uncertainties and Solutions. 14A.6 A Photography Issue. 14A.7 Conclusion. PART II LICENSING. CHAPTER 27A ROYALTY RATES AND LICENSE FEES FOR TECHNOLOGY (NEW). 27A.1 Royalty Rates. 27A.2 Per Unit Royalties. 27A.3 Royalties Based on Profitability. 27A.4 License Fees. 27A.5 Medical Device Industry Royalty Rates. 27A.6 Medical Device Industry License Fee Distribution. 27A.7 Conclusion. CHAPTER 33A THE MAGNITUDE AND MEANING OF ROYALTY MISREPORTING (NEW). 33A.1 Introduction. 33A.2 "Why?" versus "How?". 33A.3 Math Errors: 5% Error Rate. 33A.4 Royalty Rate Errors: 4% Error Rate. 33A.5 Transfer Prices: 4% Error Rate. 33A.6 Unreported Benchmarks and Milestones: 5% Error Rate. 33A.7 Unreported Sales: 16% Error Rate. 33A.8 Disallowed Deductions: 9% Error Rate. 33A.9 Unreported Sublicenses: 17% Error Rate. 33A.10 Questionable License Interpretation: 40% Error Rate. 33A.11 Conclusion. CHAPTER 33B INTELLECTUAL PROPERTY AUDIT AND MANAGEMENT (NEW). 33B.1 Introduction. 33B.2 Intellectual Property Is Important. 33B.3 But Intellectual Property Is Frequently Mismanaged. 33B.4 Why the Intellectual Property Dichotomy? 33B.5 The First Step: An Intellectual Property Audit. 33B.6 From IP Audit to IP Management. 33B.7 Insuffi cient Approaches. 33B.8 A New Intellectual Property Management Paradigm. 33B.9 Available Tools. 33B.10 Benefi ts of Intellectual Property Management. 33B.11 When to Do an Intellectual Property Audit. 33B.12 How to Do an Intellectual Property Audit. 33B.13 Software Solutions to Make the Job Easier. 33B.14 Conclusion. CHAPTER 45 NEW MEASURE OF INFRINGEMENT DAMAGES-FUTURE DAMAGES (NEW). 45.1 Royalty Rate for Future Damages. 45.2 What About Future Lost Profits? APPENDIX G MORE SAMPLE ROYALTY RATE INFORMATION (NEW). CUMULATIVE INDEX.