The Current State of Valuing Intellectual Property
Ownership of intellectual property has been the result of a rise in corporate valuations over the past couple of decades over the traditional value. This is due to many reasons that will be analyzed below. The increase in technology and the never ending technological advancements play a major role in this ownership. Having a clear understanding of the value in the intellectual property is crucial in managing the resources within a firm. There are many valuation methodologies that are used and three value maximization methods that are commonly used.
Intellectual Property is the creative things that come from one’s mind which property rights can be recognized. Intellectual property has many laws that allow owners of many businesses to be granted rights to direct types of assets from the company itself. The rights “usually give the creator an exclusive right over the use of his/her creation for a certain period of time” (WTO, 2010). The most common types of intellectual property may include trademarks, copyrights, certain design made by the company, and trade secret that are to be kept inside the business.
The purpose of Intellectual property is to protect the ideas and originality of a person work. The purpose of the laws that are provided through this property is to “encourage new technologies, artistic expressions and inventions while promoting economic growth” (2010). Having the ability to do a good job that can be very productive to the economy and it be protected is what every individuals look forward to in a business. Once the productive effort of one’s mind is protected then more is likely to come in the future, which may include producing more jobs and better technology.
How Intellectual Property is Used
Intellectual property is the, “property that results from original creative thought, as patents, copyright material, and trademarks.”...