Intellectual Property
Valuation, Exploitation and Infringement Damages 2012 Cumulative Supplement
12th Edition
Published on 3. April 2012
Book
Paperback/Softback
336 pages
978-1-118-03750-8 (ISBN)
Description
Designed to simplify the process of attaching a dollar amount to intangible assets,Intellectual Property Valuation, Exploitation and Infringement Damages 2012 Cumulative Supplement provides practical tools for evaluating the investment aspects of licensing and joint venture decisions. It discusses the legal, tax, and accounting practices and procedures related to such arrangements and examines the business economics of strategies involving intellectual property licensing and joint ventures. Licensing professionals are provided analytical models to determine reasonable royalty rates for licensing and for determining fair equity splits in joint venture arrangements.
More details
Edition
12., Auflage
Language
English
Place of publication
New York
United States
Target group
Professional and scholarly
Edition type
Revised edition
Illustrations
Illustrations
Dimensions
Height: 22.9 cm
Width: 15.3 cm
Thickness: 22 mm
Weight
460 gr
ISBN-13
978-1-118-03750-8 (9781118037508)
Schweitzer Classification
Content
Note to the Reader: Chapters or sections not in the main bound volume (Intellectual Property: Valuation, Exploitation, and Infringement Damages: 978-0-471-68323-0) are indicated by "(New)" after the title. Material new to or modified in this supplement is indicated by an asterisk (*) in the left margin in the contents and throughout the supplement.
PREFACE xvii
PART I VALUATION 1
CHAPTER 1A INTELLECTUAL PROPERTY LANDSCAPE (NEW) 3
1A.1 80% of Corporate Value Is Intellectual Property and Intangible Assets 4
1A.2 Over Seven Million Patents 6
1A.3 Corporations Own the Most Patents 7
1A.4 All Industries Are Patenting Inventions 8
1A.5 Trademarks 10
1A.6 Trademarks Are Supported with Huge Ad Spending 11
1A.7 Copyrights 12
1A.8 Trade Secrets 12
1A.9 Business of Licensing 15
CHAPTER 1B U.S. CONGRESS FLIRTS WITH DISASTER (NEW) 25
1B.1 Patent Litigation Venue 27
1B.2 Patent Infringement Damages 27
1B.3 Injunctions for Only Competitors 29
1B.4 Harming Our Only Economic Advantage 31
CHAPTER 12A RISK-ADJUSTED CASH FLOWS (NEW) 32
12A.1 Required Rates of Return 33
12A.2 Capital Asset Pricing Model 36
12A.3 Build-Up Method 41
12A.4 Venture Capital Rates of Return 42
12A.5 Probability of Success 45
12A.6 Conclusion 49
CHAPTER 12B DEALING WITH RISK AND UNCERTAINTY IN INTELLECTUAL PROPERTY VALUATION AND EXPLOITATION (NEW) 51
12B.1 Risk versus Uncertainty 53
12B.2 Decision Analysis and Decision Trees 55
12B.3 Decision Tree Components and Conventions 56
12B.4 Monte Carlo Techniques 63
12B.5 Markov Chains 66
12B.6 Obtaining Information from Indirect Observation: Shadow Pricing 70
12B.7 Bayesian Analysis 72
12B.8 Option Pricing Models 75
12B.9 Limitations on Rationality in Decision Making: The Effects of Perception and Biases on Decision Making 78
12B.10 Conclusion 79
CHAPTER 14A RIGHTS OF PRIVACY, PUBLICITY, AND CELEBRITY PERSONA (NEW) 81
14A.1 Introduction 81
14A.2 Legal Underpinnings 84
14A.3 Trademark Rights 87
14A.4 Copyright 88
14A.5 Legal Uncertainties and Solutions 90
14A.6 A Photography Issue 91
14A.7 Conclusion 93
CHAPTER 14B INTELLECTUAL PROPERTY AND INTANGIBLE ASSET VOLATILITY (NEW) 95
PART II LICENSING 101
CHAPTER 27A ROYALTY RATES AND LICENSE FEES FOR TECHNOLOGY (NEW) 103
27A.1 Royalty Rates 104
27A.2 Per Unit Royalties 107
27A.3 Royalties Based on Profitability 108
27A.4 License Fees 109
27A.5 Medical Device Industry Royalty Rates 111
27A.6 Medical Device Industry License Fee Distribution 112
27A.7 Conclusion 114
CHAPTER 33A THE MAGNITUDE AND MEANING OF ROYALTY MISREPORTING (NEW) 115
33A.1 Introduction 115
33A.2 "Why?" versus "How?" 116
33A.3 Math Errors: 5% Error Rate 119
33A.4 Royalty Rate Errors: 4% Error Rate 120
33A.5 Transfer Prices: 4% Error Rate 122
33A.6 Unreported Benchmarks and Milestones: 5% Error Rate 123
33A.7 Unreported Sales: 16% Error Rate 124
33A.8 Disallowed Deductions: 9% Error Rate 124
33A.9 Unreported Sublicenses: 17% Error Rate 125
33A.10 Questionable License Interpretation: 40% Error Rate 125
33A.11 Conclusion 126
CHAPTER 33B INTELLECTUAL PROPERTY AUDIT AND MANAGEMENT (NEW) 127
33B.1 Introduction 128
33B.2 Intellectual Property Is Important 128
33B.3 But Intellectual Property Is Frequently Mismanaged 129
33B.4 Why the Intellectual Property Dichotomy? 129
33B.5 The First Step: An Intellectual Property Audit 130
33B.6 From IP Audit to IP Management 132
33B.7 Insufficient Approaches 133
33B.8 A New Intellectual Property Management Paradigm 134
33B.9 Available Tools 134
33B.10 Benefi ts of Intellectual Property Management 135
33B.11 When to Do an Intellectual Property Audit 136
33B.12 How to Do an Intellectual Property Audit 138
33B.13 Software Solutions to Make the Job Easier 141
33B.14 Conclusion 144
CHAPTER 35A QUANTIFYING REASONABLE ROYALTIES: THE ENTIRE MARKET VALUE RULE (NEW) 149
CHAPTER 45 NEW MEASURE OF INFRINGEMENT DAMAGES--FUTURE DAMAGES (NEW) 161
45.1 Royalty Rate for Future Damages 163
45.2 What About Future Lost Profits? 174
CHAPTER 45A CONTINUALLY EVOLVING PATENT DAMAGES (NEW) 175
45A.1 Post-Verdict Royalty Rates 176
45A.2 Optimize Your Patented Technology or Lose It 181
45A.3 Litigation-Based Licenses 184
* CHAPTER 45B THE 25% RULE IS DEAD (NEW) 189
APPENDIX G MORE SAMPLE ROYALTY RATE INFORMATION (NEW) 193
APPENDIX H TRADEMARK ROYALTY RATES (NEW) 221
APPENDIX I PHARMACEUTICAL AND BIOTECHNOLOGY ROYALTY RATES (NEW) 239
APPENDIX J TELECOMMUNICATIONS ROYALTY RATES (NEW) 263
INDEX 299
PREFACE xvii
PART I VALUATION 1
CHAPTER 1A INTELLECTUAL PROPERTY LANDSCAPE (NEW) 3
1A.1 80% of Corporate Value Is Intellectual Property and Intangible Assets 4
1A.2 Over Seven Million Patents 6
1A.3 Corporations Own the Most Patents 7
1A.4 All Industries Are Patenting Inventions 8
1A.5 Trademarks 10
1A.6 Trademarks Are Supported with Huge Ad Spending 11
1A.7 Copyrights 12
1A.8 Trade Secrets 12
1A.9 Business of Licensing 15
CHAPTER 1B U.S. CONGRESS FLIRTS WITH DISASTER (NEW) 25
1B.1 Patent Litigation Venue 27
1B.2 Patent Infringement Damages 27
1B.3 Injunctions for Only Competitors 29
1B.4 Harming Our Only Economic Advantage 31
CHAPTER 12A RISK-ADJUSTED CASH FLOWS (NEW) 32
12A.1 Required Rates of Return 33
12A.2 Capital Asset Pricing Model 36
12A.3 Build-Up Method 41
12A.4 Venture Capital Rates of Return 42
12A.5 Probability of Success 45
12A.6 Conclusion 49
CHAPTER 12B DEALING WITH RISK AND UNCERTAINTY IN INTELLECTUAL PROPERTY VALUATION AND EXPLOITATION (NEW) 51
12B.1 Risk versus Uncertainty 53
12B.2 Decision Analysis and Decision Trees 55
12B.3 Decision Tree Components and Conventions 56
12B.4 Monte Carlo Techniques 63
12B.5 Markov Chains 66
12B.6 Obtaining Information from Indirect Observation: Shadow Pricing 70
12B.7 Bayesian Analysis 72
12B.8 Option Pricing Models 75
12B.9 Limitations on Rationality in Decision Making: The Effects of Perception and Biases on Decision Making 78
12B.10 Conclusion 79
CHAPTER 14A RIGHTS OF PRIVACY, PUBLICITY, AND CELEBRITY PERSONA (NEW) 81
14A.1 Introduction 81
14A.2 Legal Underpinnings 84
14A.3 Trademark Rights 87
14A.4 Copyright 88
14A.5 Legal Uncertainties and Solutions 90
14A.6 A Photography Issue 91
14A.7 Conclusion 93
CHAPTER 14B INTELLECTUAL PROPERTY AND INTANGIBLE ASSET VOLATILITY (NEW) 95
PART II LICENSING 101
CHAPTER 27A ROYALTY RATES AND LICENSE FEES FOR TECHNOLOGY (NEW) 103
27A.1 Royalty Rates 104
27A.2 Per Unit Royalties 107
27A.3 Royalties Based on Profitability 108
27A.4 License Fees 109
27A.5 Medical Device Industry Royalty Rates 111
27A.6 Medical Device Industry License Fee Distribution 112
27A.7 Conclusion 114
CHAPTER 33A THE MAGNITUDE AND MEANING OF ROYALTY MISREPORTING (NEW) 115
33A.1 Introduction 115
33A.2 "Why?" versus "How?" 116
33A.3 Math Errors: 5% Error Rate 119
33A.4 Royalty Rate Errors: 4% Error Rate 120
33A.5 Transfer Prices: 4% Error Rate 122
33A.6 Unreported Benchmarks and Milestones: 5% Error Rate 123
33A.7 Unreported Sales: 16% Error Rate 124
33A.8 Disallowed Deductions: 9% Error Rate 124
33A.9 Unreported Sublicenses: 17% Error Rate 125
33A.10 Questionable License Interpretation: 40% Error Rate 125
33A.11 Conclusion 126
CHAPTER 33B INTELLECTUAL PROPERTY AUDIT AND MANAGEMENT (NEW) 127
33B.1 Introduction 128
33B.2 Intellectual Property Is Important 128
33B.3 But Intellectual Property Is Frequently Mismanaged 129
33B.4 Why the Intellectual Property Dichotomy? 129
33B.5 The First Step: An Intellectual Property Audit 130
33B.6 From IP Audit to IP Management 132
33B.7 Insufficient Approaches 133
33B.8 A New Intellectual Property Management Paradigm 134
33B.9 Available Tools 134
33B.10 Benefi ts of Intellectual Property Management 135
33B.11 When to Do an Intellectual Property Audit 136
33B.12 How to Do an Intellectual Property Audit 138
33B.13 Software Solutions to Make the Job Easier 141
33B.14 Conclusion 144
CHAPTER 35A QUANTIFYING REASONABLE ROYALTIES: THE ENTIRE MARKET VALUE RULE (NEW) 149
CHAPTER 45 NEW MEASURE OF INFRINGEMENT DAMAGES--FUTURE DAMAGES (NEW) 161
45.1 Royalty Rate for Future Damages 163
45.2 What About Future Lost Profits? 174
CHAPTER 45A CONTINUALLY EVOLVING PATENT DAMAGES (NEW) 175
45A.1 Post-Verdict Royalty Rates 176
45A.2 Optimize Your Patented Technology or Lose It 181
45A.3 Litigation-Based Licenses 184
* CHAPTER 45B THE 25% RULE IS DEAD (NEW) 189
APPENDIX G MORE SAMPLE ROYALTY RATE INFORMATION (NEW) 193
APPENDIX H TRADEMARK ROYALTY RATES (NEW) 221
APPENDIX I PHARMACEUTICAL AND BIOTECHNOLOGY ROYALTY RATES (NEW) 239
APPENDIX J TELECOMMUNICATIONS ROYALTY RATES (NEW) 263
INDEX 299