Utilisation of Intellectual Property Rights

Intellectual Property Valuation and Audits

Intellectual Property Valuation

While development projects or ideas may be valued to support investment or budget planning decisions, in the classic sense and in terms of valuations prepared for external use, the subject of the valuation must always be a marketable asset with a material value. Although these are typically intellectual property rights, such as patents, trademarks, utility models and designs, we frequently carry out valuations of know-how, software copyright and other kinds of utilisation rights. Given that each of these encompasses special legal rights and industrial rights which may significantly affect their value, the expertise and experience of Danubia’s team of specialists is fundamental to the process of conducting due diligence and analysing the intellectual property- and industrial property rights to be valued.

The qualitative or non-monetary phase of the valuation covers a number of key areas, most notably an intellectual property business- and market analysis, as well as a technological analysis in the case of technology IP. As such, we always assemble a carefully hand-picked team especially to carry out each valuation.

The aim of the valuation and the use to which the subsequent valuation report will be put have a major bearing on the valuation process itself, so it is always important to clarify these first. We conduct a number of valuations for corporate clients registered in Hungary relating principally to bookkeeping and accounting activities, although preparing for venture capital investment is also a common goal. Assignments from abroad usually revolve around transfer pricing or M&A acquisitions; we are, however, experienced in practically every aspect of carrying out valuations from litigation to internal decision-making.

For more than 15 years now Danubia IP has been the only service provider in the Hungarian market to list intellectual property valuation as its core activity. This has afforded us an outstanding opportunity to gain unique experience in both domestic and international valuation projects. Whatever the valuation situation, we are familiar with the applicable regulations and best practices, so you may be assured of receiving a service consistent with international practice and delivered to the most exacting standards.

Intellectual property audit and intellectual property survey

An intellectual property audit serves a dual purpose. On the one hand we map your organisation’s intellectual property wealth and identify all its key components. This does not simply include industrial property rights which have been registered, but also intellectual property which still represents a value despite its lack of registration making it difficult to account, for example, indications used in trade, know-how and certain categories of copyrighted works. In the course of the survey we prepare an inventory of all intellectual property wealth which, given its value or importance, is worth managing independently.

The other very important aim of the audit is to assess your current practices when it comes to intellectual property management and identify scope for development. Although this is essential if your company or institution has patentable inventions and innovations, it plays an even greater role where there is valuable knowledge which is not protected. In such cases the correct formulation of operating processes and agreements is the most important means of protecting intellectual property wealth. Particular attention should be paid to such areas as safeguarding the company’s knowledge assets through employment agreements, agreements setting out the terms of relationships which may result in the creation of intellectual property, for example, IT development-, creative- and R&D agreements, or the accounting of R&D activity and monitoring of restrictive operation measures, i.e. Freedom to Operate Analysis. 

If we look at different organisations we can see that IP management frequently takes place in an unsystematic, unregulated and unconscious manner. So, while we review how your organisation operates and engage in dialogue with your staff, we look to find those critical operational elements where adopting appropriate measures may deliver considerable benefits and significantly reduce or even eliminate legal- or industrial property risks. Just as these critical points may change over time, so too may your organisation’s IP management needs; there are no one size fits all blanket solutions when it comes to intellectual property management. The survey does, however, provide you with an accurate snapshot of your organisation’s intellectual property wealth, current practice and those points for attention which we would recommend you address.

Developing an IP Policy setting out the principles of intellectual property management and descriptions of processes, complete with templates of relevant documents to assist your staff in their work, can offer a comprehensive approach to addressing the problems identified. This will provide you with an overview of IP-related processes, thereby allowing your organisation, with our support, to act consistently, irrespective of when and with which member of staff any given issue arises.