While it is common in the industry to value IP using comparable analysis delivered under a “black box” approach, SRA believes in a more transparent method. Comparable analysis can be useful in some instances, such as when sorting patent portfolios in IP-rich industries. However, at SRA, you will not find any black box.

SRA believes in building credibility gradually by presenting well-documented, rational arguments and assumptions. Each IP right is distinct and unique; its value is subjective and specific to its context of use. Therefore, it is important to demonstrate how the particular IP is relevant in the marketplace and why, and ultimately how it can be converted into revenue and profit. This is a language that your readers will understand.

Our valuation opinions are structured by first presenting the IP rights and their commercial applications. A market model is then carefully developed to assess market needs for products and services implementing the IP rights. This includes determining the window of opportunity: the period of time during which the IP will be relevant before obsolescence or IP expiry. An income model is then developed to demonstrate a complete business case for the commercialization of said products and services. A valuation method is applied to value the underlying business; when possible, several methods are used. Finally, we assess how the IP rights can effectively protect the business value.

In many instances, we assess IP before a client has a clear business plan. Our IP valuation opinion thus often serves as a business plan. The challenge lies in developing assumptions and models that are convincing to businesspeople knowledgeable in the field.

There is an element of futurology involved – part art, part science. This is where SRA excels.