My house is worth more it’s just that benchmarking where you trying to find an example of a sales price so it’s a sales comparison the problem with that for IP a couple of problems one is there isn’t an active market to the same extent as there’s property.
The other reason it was referred to in the previous section by implication each piece of IP is unique and different so that benchmarking is more difficult having said that it can be useful so let’s say you’re valuing Adam is someone some pharmaceutical patents in todo with Alzheimer’s disease or something like that you might be able to find some comparables which are giving you a kind of broad reference points but often.
They’re not going to be good enough to really get can you guide for house valuations through to go through benchmarking and come up with a robust opinion so that gets us to a the-the third approach which is the income approach and that’s really where you’re seeing an asset is it is worth as much as you expect.
It to generate cash flows or earnings also taking account of the risks associated with essence there with that asset so you know with technology Brad you forecasting the future revenue you gauging the risk using kindof for finance methods but also taking account with your understanding of those assets and.
House Evaluation is Best
You’re saying well expected to earn ringgits next year and a million ringgits the next let’sbring that go back to a present value you mentioned products that technology that hasn’t been commercialized that can complicate the income approach but it’s still often still useful so.
I can provide some examples just touching back on myposIP valuation model they favor the income approach and that in many situations.Would be the preferred methodology as long as one can come up with sensible right sensible assumptions you know where.
a product hasn’tbeen commercialized you can’t say well-had sales of a hundred last year what did we expect them to get next year you can’t say we’ve already got royalty income from that particular patent’s use that as a basis for growth but you can still in some.