The Intent:

You own intellectual property such as a trademark, patent, proprietary process, or brand and want to license it without underpricing its economic contribution or triggering tax or legal problems.

How I solve it:

I apply the 25 Factors Affecting Business Valuation to isolate the economic role of the IP within the business. I focus on Factor #9: Research & Development, Factor #18: Marketing (Brand), Factor #11: Future Business Outlook, Factor #4: Return on Investment, and Factor #24: Risk.

The 5 Senses Inspection Report helps confirm whether the IP is actually embedded in operations, customer behavior, and revenue generation, or whether it exists largely in theory.

Experience:

IP valuation fails when advisors confuse registration with value. After 10–15 years of working with operating businesses, it becomes clear which IP assets actually drive revenue and which are decorative.

This distinction requires lived experience inside real businesses, not just legal definitions. See my “Experience” link.

The Result:

You receive a defensible IP valuation that supports sustainable licensing terms and protects long-term value.

The Intent:

You want to set royalty rates that are fair, defensible, and aligned with economic reality, not arbitrary industry rules or guesswork.

How I solve it:

I use the 25 Factors to determine how much of the business’s income is attributable to the IP versus execution, capital, and management. Factor #4: ROI, Factor #11: Future Outlook, Factor #6: Utility, Sustainability, and Scalability, and Factor #24: Risk are critical here.

The 5 Senses Inspection Report verifies whether the IP consistently influences customer choice, pricing power, or operational efficiency.

Experience:

Experience shows that royalty rates collapse deals when they ignore operational reality. After years of observing failed and successful licensing arrangements, patterns emerge showing what rates businesses can actually sustain.

That insight comes only from watching real businesses live with those agreements. See my “Experience” link.

The Result:

You arrive at royalty rates that licensees can afford and licensors can defend, reducing renegotiation and failure risk.

The Intent:

You want a credible answer to what your IP is worth today, either for licensing, sale, or tax purposes.

How I solve it:

I apply the 25 Factors Affecting Business Valuation to assess the IP’s contribution to revenue, differentiation, and risk reduction. Factor #18: Marketing and Brand, Factor #9: R&D, Factor #11: Future Outlook, Factor #24: Risk, and Factor #25: Opportunity are central.

The 5 Senses Inspection Report confirms whether customers recognize, trust, and respond to the IP in real purchasing behavior.

Experience:

After years of valuing IP across industries, it becomes clear that market behavior matters more than registration certificates. Experience teaches how to separate legal ownership from economic power.

This judgment protects owners from overvaluing or underutilizing their IP. See my “Experience” link.

The Result:

You receive an IP valuation grounded in real economic contribution, suitable for licensing, sale, or compliance purposes.