The Principles and Context of the Valuation of Intangibles

The Principles and Context of the Valuation of Intangibles

1. Farok J. Contractor When you can measure what you are speaking about, and express it in numbers, you know something about it; but when you cannot measure it, when you cannot express it in numbers, your knowledge is of a meager and unsatisfactory kind: it may be the beginning of knowledge, but you have scarcely, in your thoughts, advanced to the stage of science.

2. Company, but only a portion of its assets, capability, or knowledge, which will be used in combination with the other firm.

3. WHEN DO INTANGIBLE ASSETS NEED T BE VALUED? 1.A company sale, merger, or acquisition. 2.Sale, purchase, or licensing of separable assets such as brands, patents, copyrights, data bases, or technology. 3.Lawsuits involving intellectual property infringement. 4.Tax liability calculations in the context of transfer of intangible assets and technology to affiliated firms, possibly in another nation. 5.Corporate alliances. 6.R&D management.

4. THE NATURE AND ATTRIBUTES OF INTANGIBLE CORPORATE ASSETS There are various types of corporate knowledge, these comprise (I) formally registered Intellectual Property Rights, such as patents or brand names. (II) Intellectual Assets, which comprise both the above registered property rights as well as codified but unregistered corporate knowledge. (III) comprises uncodified Human and Organizational Capital, or expertise that resides in the thinking of employees and in organizational routines.