Valuation of intangible assets in global operations.

Valuation of intangible assets in global operations.

1. Intangible Assets and Principles for Their Valuation

   • This Lord Kelvin
     • what does it say
       • dramatic increase in corporate mergers, acquisitions, and alliances
     • the acquisition target or the potential ally firm
       • subcontracting and modularization of business functions
   • types of corporate knowledge and their attributes
     • WHEN DO INTANGIBLE ASSETS NEED TO BE VALUED?
       • 1. A company sale, merger, or acquisition.
         • problems of cultural compatibility between the merged organizations.
       • 2. Sale, purchase, or licensing of separable assets
         • This could include any transferable knowledge, codified or teachable, and rights to intellectual property or markets.
       • 3. Lawsuits involving intellectual property infringement
         • Here courts need to determine infringement costs and penalties
       • 4. Tax liability calculations
         • possibly in another nation
       • 5. Corporate alliances
         • This decides the equity share of JV partners, royalty rates, and other fees.
       • 6. R&D management
         • contribution in codevelopment projects is another crucial measurement area.
   • there is currently a determination of license fees
     • some consulting companies are trying to develop exclusive databases of licenses and terms of the risk sharing agreement
     • Marketing managers have evolved the notion of brand equity
     • and they have been created
       • unit price premia
       • market share increments”

2. PART I: THE NATURE AND ATTRIBUTES OF INTANGIBLE CORPORATE ASSETS

   • there are types of corporate knowledge
     • 1. formally registered intellectual property rights
       • Patents
       • Brands
       • Copyrightas
     • 2. Intellectual Assets
       • Drawings
       • Data bases
       • Recipes
     • 3 . comprises uncodified Human and Organizational Capital
       • Colective Corporate Knowlwdge
       • Organizational Culture
       • Customer Satisfaction