FPA Workshop Practice intel Property valuation.

FPA Workshop Practice valuation of intellectual property, in special cases
Option 1.

Organize production on a non-exclusive license
the use of patented technology industrial development in the field of
confectionery. Rights under the license agreement are transferred to 3 years. Determine the value of the transferred rights.
Production equipment for the license allows to produce 20,000 products per year
and prodavt them in the first year of the forecast period at a price of 60 rubles. each, manufacturing licensee profitability is 32%.
Capacity utilization by year forecast period is respectively 100%, 90% and 80%.
It is proposed to the annual increase in the price of products by 10%.
Given the availability of grant and the possibility of obtaining real benefits
over its competitors due to the patent monopoly,
take the value of a share in the profits of the licensor the licensee's 30%.
The risk-free rate is 6%.
Risks associated with the object of evaluation are defined in the amount of 13%.

Calculate the royalty rates under different conditions of distribution of additional profit from the use of IP object between the licensor and the licensee:
a min, with D = 10%;
in relation to the conditions of production licenses in industries.

Determine the cost of trademark rights cost approach.
Valuation Date 01.01.2011. Rights over TK were issued 01.01.2004.
The volume of sales of products using the specification for the valuation date is 1125 thous. Rubles. per month.
Dollar exchange rate on 01.01.2011: 1 USD / 1 RUR = 30,3505.
The cost of design in 2003 amounted to 45 thousand. Rub.
Marketing costs in 2004 amounted to 250 thousand. Rub., On advertising in 2004, 2005 and 2006g.g. - 200 thousand. Rub., 2007 and 2008 - 150 thousand. Rub., In 2009 and 2010 - 100 thousand. Rub.
The costs associated with registration of rights to sign tovrny totaled 55 thousand. Rub.
The profitability of production using the TK of the valuation date 24%.