Understanding the Value of Your IP

Intellectual property is often central to the success of business enterprises. For a business, the quality of the IP assets it owns directly often determines the extent of financial success it tastes. For an inventor, the quality of their IP assets often directly determines the extent of financial reward it can earn. And this makes sense! The beauty of intellectual property is that it can turn ownership of an intangible asset directly into a legal property or asset that can (in some cases) generate substantial revenue on its own. This post is primarily about explaining to you the value of IP in general. If you happen to have intellectual property of your own, we can also help you derive its value.

The Value of Intellectual Property

In this section, we intend to explain the sheer value intellectual property brings to the fore.

Competitive Advantage

In today’s world, a creative idea that can break new ground can potentially be worth a million dollars and more. If this creative idea of yours is not protected by exclusive IP rights that you own, then your competitors can legally make the same kind of money through that idea. And, this can even be at the expense of the money you’d otherwise make. Having an edge over your competitors makes a significant difference, all IP lawyers and agents are in agreement about the same.


For a budding inventor, the prospect of their invention attracting the attention of a multimillion dollar corporation is almost like a dream coming to reality. After all, that’s a certain way to ensure financial success. But, how does an inventor make sure that their invention will not be exploited without them receiving their fair due? Of course, through patent protection! Of course, you ideally need solid legal representation by an IP lawyer to make sure things progress smoothly.

Personal Recognition

IP protection can virtually ensure you get all the recognition that you deserve for producing a work of brilliance. For instance, a novelist, through copyright, can prevent other parties from stealing the credit that they rightly deserve. And, if a big production house intends to turn the novel into a movie someday, your copyright can ensure you get are properly compensated.

The Valuation of Your Intellectual Property

“Everything said and done, what is the real value of my intellectual property?” To this, any IP lawyer would respond that there are three basic methods of IP valuation:

  • The Cost Approach determines the value of your IP on the basis of the financial expenditure that was required in order to obtain the asset
  • The Market Approach depends on the existence of an active marketplace, where analysts can compare the market value of comparable assets to come to a conclusion
  • The Income Approach is the most popular of the three as it simply relies on the expectation of future profits that the IP can potentially generate on its own

In all cases, it is important that the individual or entity responsible for valuing the asset has a certain level of expertise on the subject. If you need legal assistance protecting (or valuing) your IP assets, you can contact us.