Nowadays, the significance of intellectual property is rapidly increasing. According to a recent study, 40% of a corporate asset is intangible and not shown in the balance sheet. Accurate valuation of intellectual property is essential and critical for IP sale, licensing agreements and M&A of the business entity.
Licensing is becoming an important source of corporate revenue. Lots of companies are entering into licensing agreements for their patented technology, trademarks etc. As such, frequent inspection procedures for the Intellectual Property are essential for effective safeguarding of the company asset. Unfortunately, lots of licensees underpay the royalty dues and it gives rise to the need for an inspection by an independent third party.
As the significance and number of licensing agreements is increasing, disputes also more frequently happen. Whether it is a dispute on royalty due, infringement damages or lost profits, it is essential and critical to construct solid financial models and forecasting models for accurate damages calculation.