IP valuation methods

There are a number of different ways to value intellectual property (IP) assets. The method you choose depends on the type of IP you have and the purpose for valuing it.

Common IP valuation methods include:

  • relief from royalties
  • excess profits or notional maximum royalties payable
  • capitalisation of earnings
  • net present value of incremental cash flows
  • gross profit differential
  • premium sales price
  • comparable market transactions
  • cost-based
  • brand strength
  • real options

To undertake a valuation of your IP, it is recommended that you visit a professional in this area.

Last Updated: 13/12/2012

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Bachelor of Arts in Economics

Policy Officer -  International Policy & Cooperation
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