Intellectual Property Valuation in Germany

Intellectual property (IP) valuation refers to the methods through which intellectual property assets are valued on their commercial prices. The methods are important for various matters related to intellectual property, such as its sale, licensing, or purchase. Our German law firm can offer an in-depth presentation on the main IP valuation methods available here. 

The value of intellectual property in Germany 

The intellectual property in Germany is protected by a set of rules of laws. Investors in a company in Germany can protect the company’s intellectual property by registering the respective product, whether it refers to a trademark, brand, logo, a patent, or other types of creative or innovative work. 

An intellectual property valuation is a tool that provides the investors the opportunity to assess the true financial potential of their IP, thus generating value for the company. This is of high importance, as a consequence of the fact that more and more companies obtain profits from sales deriving from IP products and services. Such companies develop new products for the market and thus, they invest a part of their capital in the research and development field. 

Methods to perform IP valuation in Germany 

According to the World Intellectual Property Organization (WIPO), any asset belonging to a company can be valued for its current market price. An asset can be a tangible or intangible item and its value is determined by its future economic benefits. Our attorneys in Germany can provide more details on the legal interpretation of tangible/intangible assets.

In the case of an intangible asset which is also an intellectual property asset, the value is determined based on the ability to exclude other competitors from a particular market. 

The value of an IP asset is determined by the following: 

• generate financial benefits for the owner;

• develop the value of other assets that are related to the respective IP item.

There are three main methods to determine the value of an IP asset: 

• cost method – establishing a value based on the costs of developing the same or a similar asset in Germany or in another market;

• market method – establishing value based on the price of a similar IP asset;

• income method – the value is based on the estimated income generated by the sale of the asset. 

Persons interested in receiving further information on the intellectual property valuation in Germany are invited to contact our German law firm.