Abstract
Technology licensing is one of the key transactions that enable translation of R&D investments into profits by commercialization of technology. The elementary economics of such transaction suggests that while a licensor attempts to derive benefits greater than the cost of development of the technology protected by IPR, in exchange of monopoly rights, the licensee attempts to minimize the license value to ensure higher profits. This leads to the requirement of valuation of the technology by either party. This paper presents some of the key characteristics related to intellectual property valuation and an analysis of the income method approach in estimating the profitability of commercialization of a technology involving a patent.
Keywords
- Income Approach Method Search this journal for Income Approach Method (opens in a new tab)
- DCF Analysis Search this journal for DCF Analysis (opens in a new tab)
- Technology Commercialization Search this journal for Technology Commercialization (opens in a new tab)
- Patent Licensing Search this journal for Patent Licensing (opens in a new tab)
- Technology Licensing Search this journal for Technology Licensing (opens in a new tab)
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Copyright (c) 2011 Dhruv Joshi (Author)

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Keywords
- Income Approach Method Search this journal for Income Approach Method (opens in a new tab)
- DCF Analysis Search this journal for DCF Analysis (opens in a new tab)
- Technology Commercialization Search this journal for Technology Commercialization (opens in a new tab)
- Patent Licensing Search this journal for Patent Licensing (opens in a new tab)
- Technology Licensing Search this journal for Technology Licensing (opens in a new tab)
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Vol. 3 No. 6 (2011)
Financial Markets, Innovation & Macro-Economics
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