While many elements of business are easy to put a Rand value on – such as
buildings, vehicles, or stock holdings – some are a little less obvious.
Intellectual Property is no less important than the building your business operates from, but can be difficult to quantify.
One definition of Intellectual Property refers to it as “… creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce.” As you can imagine, putting a price on these creations in business ventures can be subjective and create some dissent.
The usual methods of valuing property may not always apply, so it is always worthwhile calling in a professional valuator to ensure that your IP is protected at its true value.
The value of patents, for example, can change radically over a short period. While they may have started out as a novel and innovative fix for a problem, technology may have closed this gap and diluted the value of the patented idea or service.
A brand, on the other hand, may have started out small. But they may have invested a great deal of time and money over a long period of time into creating something recognisable and valuable. An investor who understands the value of a good reputation would likely see that he cannot fast-track this kind of brand recognition and would be prepared to pay for it.
While current market costs are relatively easy to assess, many investors want to know that their IP investment is safe. This can pose a problem in an uncertain and fast-moving world where IP can lose its value in just a few short years. Added to this, there may be costs involved in defending and enforcing the IP which also need to be considered.
If you are holding or considering investing in a business where intellectual property is a factor, then we’d love to hear from you. Our team have decades of experience in this arena and are ready to assist. Visit us at The Property-Property East Rand to fine out more.