Independent valuation of licenses

A license is a document granting the right to perform any actions indicated. In the licensing process (the process of issuing a license) under the license agreement, one is granted the right to use the object of the license, subject to the conditions and requirements under which the license is valid (licensing terms).

In the current market conditions of dynamic development, license valuation and the price of license fees have acquired great importance. Its main purpose is to delegate the rights of use to other people or entities by means of a license agreement.

Types of license valuation

The valuation company Swiss Appraisal conditionally divides licenses into four categories:

  • Business license
    There is a range of licensed activities (which can only be allowed with official permission). In this case, the object of valuation can only be established within the company when it is sold, as transfer of such objects is impossible.
  • Patent licensing
    The right holder who patented his invention has the right to use it according his own discretion, including transferring his rights to another person. This kind of action can be done with a patent license agreement (license agreement). A patent license is a contract that lets a rights holder transfer their rights (utility model / industrial design) to another person, while receiving some royalties. In the process of making such a licensing agreement, both the rights holder and the second party have the right to establish a real value of the patent and conduct license valuation by means of analyzing the estimated return and expenses of the license at hand. License valuation allows one to determine the efficiency of an invention and its commercial success.
  • Copyright license
    The valuation of licenses in copyright law allows one to provide an object for use (distribution of copies, the right to copy, processing, transmission and other information channels under copyright law). The exclusive rights of copyright holders can not be alienated.
  • Licenses for the use of natural resources and mining
    This type of license includes:
    • Deposit licenses
    • Licenses for the use of water
    • Licenses for the use of forests
    • Others

    Transferring this type of license, as well as for the licensed activities in a business, is not possible. Also, this type of license is limited by usage time. When valuating these types of licenses, generally the income approach is applied because it really reflects the estimated return for the ownership of the license for a given segment for a given period of time.

If you want your license to be valuated - send a request via our website.

Objectives of license valuation

Swiss Appraisal offers the following:

Only experts who are professionally engaged in property right valuation for intellectual property in a specific field can conduct license valuation. Appraisers rely on the background information presented by a client, and when analyzing it, they can use different approaches for the object of license valuation. At the same moment, it is often needed to study the market in detail, to elicit possible competitors and forecast income volume and potential gain. As a result, the client gets a license valuation report, containing a realistic opinion on the value of the license agreement or fees.

The experts of the valuation company Swiss Appraisal have rich experience in the assessment of all types of licenses in various sectors.

For more information on license valuation, please contact the Swiss Appraisal regional office.