Intellectual Property Valuation within a Bankruptcy Context Part Two

Licensing executives and related professionals (hereinafter “analysts”) are often called on to conduct intellectual property valuation analyses (or damages analyses or transfer price analyses) within a bankruptcy context. Part One of this three-part discussion examined the elements (or components) of the bankruptcy valuation assignment. This Part Two of the discussion describes—and illustrates—the generally accepted intellectual property valuation approaches. This discussion presents an illustrative example of the application of each of the three intellectual property valuation approaches—the cost approach, the market approach, and the income approach. Part Three of this discussion concludes with an explanation of the valuation synthesis and conclusion process. That discussion also presents guidance on the development of the intellectual property expert report for purposes of the bankruptcy controversy proceeding