Valuation and Pricing of Technology-Based Intellectual Property (Hardcover)

~ (Author) "One can think of three discrete species of licensed rights: business, products, and technologies..." (more)
Key Phrases: prescribed randomness, paradigm licensing, licensed subject matter, Monte Carlo, Units Sold Year, Crystal Ball (more...)

Editorial Reviews

Product Description

Proven methods to account for risk and assign value

To develop or not to develop? To license or not to license? What price will be a true reflection of the product’s value from the buyer’s and seller’s points of view? These are the compelling questions that confront developers of cutting-edge technologies years before those technologies will reach the marketplace. In Valuation and Pricing of Technology-Based Intellectual Property, Richard Razgaitis offers complete coverage of the issues, methods, and art of valuing and pricing "early-stage" technologies.

Razgaitis draws upon over thirty years of experience in developing technology-based intellectual property to thoroughly examine this volatile process from all angles. He presents six proven valuation methods, and a series of case studies that show them in action. Topics covered include:

• Paradigm licensing
• Stacking
• Stage development
• Rate-of-return available for different risks
• Using real options

Valuation and Pricing of Technology-Based Intellectual Property will be an essential addition to any licenser’s, developer’s, or IP lawyer’s professional library.

From the Inside Flap

Companies in the business of developing cutting-edge technologies face the daunting task of having to assign value to their precommercial, early-stage products years before they may ever be presented for sale or license. Such technologies may be the next big thing, or they may prove to be nothing but a punchless dud. New technology seeking a market (or "orphaned" by a change in corporate focus) and new market opportunities seeking a technology solution create decision challenges for business unit heads, "biz dev" leaders, and R&D managers: What is the risk-adjusted value of going forward? Of deal-making to an alternative technology? Of abandonment? Richard Razgaitis provides invaluable guidance on answering these questions and more in his far-ranging and fascinating Valuation and Pricing of Technology-Based Intellectual Property.

A completely revised, updated, and expanded edition of Razgaitis’s Early-Stage Technologies: Valuation and Pricing, this new volume presents a comprehensive approach to determining the future of new technologies based on technology rights, risk assignment, the art of deal-making, and deal economics. As with its predecessor, the core of the book is comprised of thoughtful examinations of six valuation methods:

• Industrial Standards
• Rating and Ranking
• The Rules of Thumb Method
• The Discounted Cash Flow Method
• Advanced Methods, including Monte Carlo and real Options
• Auctions

Each includes all-new material, such as discussions of paradigm licensing, stacking, stage development, rate-of-return available for different risks, and the use of real options. Sample spreadsheets, valuation analysis charts, and case studies based on the author’s real-world experience demonstrate how these valuation methods apply in specific instances. Razgaitis also provides his readers with ample background in core concepts such as sources of value, methods of valuation, equity realizations, and negotiation strategies.

There will never be a silver bullet for perfectly assigning value and price to nascent technologies that may be years from reaching the marketplace. But as the author carefully explains, by applying reasoned judgement, proven methodologies, and the wisdom of experience, risk can be appraised and value created. Valuation and Pricing of Technology-Based Intellectual Property is a must-read for licensing executives, corporate R&D managers, M&A deal-makers, and intellectual property consultants and attorneys.

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Product Details

• Hardcover: 384 pages
• Publisher: Wiley; 2002 edition (April 25, 2003)
• Language: English
• ISBN-10: 047125049X
• ISBN-13: 978-0471250494
• Product Dimensions: 10 x 7.1 x 1.3 inches
• Shipping Weight: 1.8 pounds (View shipping rates and policies)
• Average Customer Review: 4.8 out of 5 stars  See all reviews (5 customer reviews)
• Amazon.com Sales Rank: #610,933 in Books (See Bestsellers in Books)

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Customer Reviews

Most Helpful Customer Reviews

34 of 34 people found the following review helpful:

5.0 out of 5 stars Some thoughts from a competing author, June 23, 2003

By	Gordon V. Smith (Moorestown, NJ USA) - See all my reviews

Dr. Razgaitis has tackled an area that contains the most difficult question facing professionals and intellectual property owners - how to value and price embryonic technology.

In recent years many have attempted to educate us on the subject of valuing intellectual property. Complex financial theories and spread-sheet models emerged, especially during the e-business bubble as some strove to explain the unexplainable valuations of enterprises whose only assets were intangible. Dr. Razgaitis obviously knows and understands the theories, but doesn't let the reader escape into flights of fancy, instead bringing one back to earth gently, sometimes with humor, sometimes with real-life anecdotes.

This book allows the reader to seek information to a depth that he or she wishes. As an example, the Monte Carlo technique is presented in all its complexity for those willing and able to study it. At the same time, mathematically challenged readers can still come away with an understanding of what is going on. The author is skilled in clearly explaining complexities and the many well designed charts and tables greatly assist the reader.

These are just some of the features that set this book apart and give it a strong practical value to all of those who create and exploit technology assets, and to those who advise them. Anyone in those roles should have this book within easy reach.

5 of 6 people found the following review helpful:

5.0 out of 5 stars Excellent work, September 20, 2005

By	Ingo Leung (Hong Kong) - See all my reviews (REAL NAME)

Dr. Razgaitis has achieved an excellent job in illustrating most types of market-practiced methods in the valuation & pricing of tech-based intellectual property. He has done it not just in a coherent manner, but also with a touch of humourous & philosophical elements, which makes the book a surprisingly enjoyable read. Despite the fact that each valuation methods has different, or even diverse, characteristics, Dr. Razgaitis managed to clearly present how each method can be practically applied in various situations, and how these methods can be jointly applied to solve business problems. He has skillfully provided knowledge & guidelines for readers to come up with their own judgement regarding what methods to be applied in various real-world situations, rather than promoting a particular method as the 'silver bullet', like some other authors may attempt to do; this is refreshing & pragmatic as technology valuation is both art & science. The references of the book are also highly valuable, as they provides good pointers to resources that would enable readers to practice the methods.

1 of 1 people found the following review helpful:

5.0 out of 5 stars Budding inventors/entrepreneurs will want this book, August 15, 2006

By	C.E. (California) - See all my reviews

As an accountant outside of the IP field, I found this to be a good tool to "round out" my business acumen. Enjoyed the presentation of pricing models.