IP Valuation Guide
WTOIP has adopted the State IP Office’s intangible asset valuation approaches, and based on the valuation experts’ specialized knowledge to form a professional opinion in such valuation by taking into consideration the legal value, patent’s technology superiority, market value, and investment return. Such professional and competent valuation report has given the government authorities, industrial parks, corporations and investors both scientific and excellent analysis for their strategic decision making processes to be taken on the assets.
1. For Capital Increment: To enhance corporation influence by using intangible value as the share capital injection and increment.
2. Negotiations to sell or license IP rights : To provide reference to know the value of IP and intangibles in business transactions, negotiating the agreement to make sure the parties are engaging in a good deal to further enhance the intangibles’ trading and licensing.
3. Security Collateralization To provide reference on using Valuation of IP and intangibles as security for bank loans.
4. Realizing the value of your intangibles: To know the value of your intangibles, strengthening your competitiveness
1. Credibility First & Government-recognized.
2. Meeting Demand & Ensuring Customer Satisfaction.
3. A full range of services offered.
In May 2013, a company was set up by two parties whereas the investor provided the funding of RMB200 million while the other firm provided their technology as intangible assets as the capital injection under WTOIP’s suggestion. The total value of 12 Utilities and 6 Inventions as whole of the intangible assets are worth about RMB300 million and at the end both sides agreed on the total capital of RMB500 million, and the new firm was successfully set up with 60% shares held by the said company.
Highlights & Comments
IP’s intangible asset value can be used as a financial asset similar to currency, real estate, equipment and plants etc. for the share capital injection and increment, and the maximum value can be 70% of such intangible value as capital. The capital and funding pressure can be alleviated by using this approach of intangible asset valuation in order to obtain higher sharing of profits and dividend and a bigger say in decision-making process. “Asset Valuation Report” can provide good reference on the valuation of IP as intangible asset, and through Audit Company’s further assessment such value can then be used as registered share capital and security for loan application.