IP Licensing & Royalty Valuation
From music to software, IP is the silent moneymaker. But valuing royalties requires creativity and compliance.
Core Considerations
Market Royalty Rates – Derived from comparable agreements.
Useful Life – Duration of licensing rights.
? Economic Benefit – Incremental revenue or cost savings.
Methods
Relief-from-Royalty – Benchmarking hypothetical license fees.
Excess Earnings – IP-specific contribution to profits.
Cost Approach – For internally developed IP.
Way Forward:
Align with Ind AS 38 and IFRS 13.
Document benchmarks transparently.
Track brand migration & global licensing trends.
Is royalty the most underused valuation metric?
Absolutely. We have IBBI-Registered Valuers under all three categories—Land & Building, Plant & Machinery, and Securities/Financial Assets. Our team also includes experienced chartered accountants and engineers.
Yes. We offer remote/desk-based valuation for startups, financial assets, and select use-cases. For physical assets, we usually require on-site verification.
Yes. Client confidentiality is paramount. All data shared is stored securely and not disclosed to any third party without your consent.
