Intellectual Property rights represent up to 70 percent of today companies value.
These intangible assets are the backbones of companies to reach a sustainable and competitive advantage. They represent a very useful tool to leverage business value through diverse types of transactions:
- Assigning or licensing Intellectual Property rights to third parties;
- Using them to get damages from infringers;
- Ensure the good transfer of knowledge and technology within a multinational group;
But all these transactions require the intellectual property asset to be valued and, in case of transactions between affiliated companies (“interco transactions”), require this valuation to comply with Transfer Pricing standards.
Gevers guides you in the valuation of your Intellectual Property assets, such as copyrights. All the methodologies practiced in collaboration with highly qualified transfer pricing specialists are renown professional methods compliant with international standards: “OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations “, International Accounting Standard (IAS) 38, National Ruling Commissions,…
Gevers works together with financial and tax experts to value Intellectual Property rights depending on the specific needs of each client and each situation:
Value an intellectual property Right in view of an assignment of this right to a third party
These valuation missions are performed through the application of three main methodologies: “the cost-based method”, “the income-based method” or the “market-based method”. In addition to the financial valuation, Gevers experts may also provide you with an assessment of the qualitative strengths and weaknesses of all the related intellectual property rights.
Estimate the “market fair” (arm’s length)
terms to be applied in transactions between inter-related companies. This valuation complies with the Transfer Pricing principles and the licensing conditions are also analysed in the framework of royalties to be considered in some tax incentives.
Gevers, together with financial and tax experts, has several years of experience in the valuation of intellectual property assets. The combination of attorneys and transfer pricing specialists is a real added value for any valuation mission as it enables us to assess all the qualitative and financial aspects of an IP deal.
As one of the leading intellectual property firms in Europe, Gevers has been providing these services for over many years, to various types of clients (from start-ups and SMEs to large group operations) and in different contexts (licensing, assignment, interco transactions, IP tax regimes…). This long-term expertise enables Gevers to validate its approach and methodologies.