Asset
Something valuable owned by an individual or organization, which can include patents, copyrights and trademarks.
Assignment
The legal transfer of ownership rights of IP from one party to another, often for compensation.
Binomial option pricing model
A mathematical model used to value options, including real options, by considering multiple possible scenarios for the future, typically using a binomial tree.
Black-Scholes model
A mathematical model used to calculate the theoretical price of financial options, often applied to options embedded in intellectual property.
Commercialization
The process of taking intellectual property from R&D to market-ready products or services.
Copyright
Legal protection for original creative works, including literature, music and software.
Cost method
A valuation method that estimates the value of intellectual property by determining the cost to recreate it at current market prices.
COVID-19
The acronym for “coronavirus disease 2019,” a global pandemic that significantly impacted various industries, including intellectual property and technology transfer.
Due diligence
A comprehensive examination and assessment of intellectual property to evaluate its value, risks and potential.
Full economic costing
A financial calculation that accounts for all costs associated with a R&D project at a university, including overhead expenses.
Infringement
Unauthorized use, reproduction or distribution of intellectual property rights, which may result in legal action.
Income approach
Valuation method in which the value of IP is determined by focusing on future cashflows from the development and sales of products incorporating the IP assets.
Intangible assets
Non-physical assets, such as patents, copyrights, trademarks and trade secrets, which have value to an organization.
Intellectual property (IP)
Legal rights granted to creations of the mind, such as patents, trademarks, copyrights and trade secrets.
International valuation standards
International standards and guidelines that provide principles for the valuation of intellectual property.
IP management
Strategies and practices for maximizing the value and protection of intellectual property assets.
IP rights
Legally protected rights associated with intellectual property, such as the right to exclude others from using, making or selling an IP.
Joint venture
A business arrangement in which two or more parties collaborate to develop, use or commercialize intellectual property.
License (agreement)
A legally binding contract that grants permission to a third party to use, sell or distribute intellectual property in exchange for compensation or royalties.
Licensee
The party that obtains a license to use intellectual property owned by another party.
Licensing
Granting permission to another party to use, make or sell intellectual property in exchange for compensation.
Licensor
The party that grants a license to another party for the use of its intellectual property.
Litigation
Legal action taken to enforce or defend intellectual property rights through the court system.
Market approach
A valuation method that assesses the value of IP based on comparable sales, licensing agreements or market transactions.
Market intelligence
Information and data collected and analyzed to understand market trends, competitive landscapes and other factors relevant to the valuation of intellectual property.
Monte Carlo simulation
A statistical technique used to model various outcomes by running multiple simulations with random variables, often applied in the valuation of intellectual property for risk analysis.
Net present value
A financial metric that calculates the present value of expected future cash flows, often used in the valuation of intellectual property to determine asset value.
Patent
A government-granted exclusive right that allows an inventor to protect their invention from unauthorized use for a specified period.
Peer review
The evaluation of intellectual property valuations and methodologies by independent experts to ensure their accuracy and validity.
Portfolio
A collection of intellectual property assets held by an individual or organization, often for strategic purposes.
Prior art
Existing public knowledge or documented information that may affect the patentability of an invention.
Probability distributions
Mathematical functions that describe the likelihood of different outcomes or events, often used in risk analysis during the valuation of intellectual property.
Proof of concept funding
Funding provided to support the development and validation of early-stage innovations or technologies, often by universities or institutions.
Real options method
A financial technique used to value intellectual property by considering the flexibility and strategic options it provides over time.
Research and development
Systematic activities aimed at creating new knowledge, products, processes or technologies, often leading to valuable intellectual property.
Royalty
A payment made by one party (e.g., licensee) to another (e.g., licensor) for the use of intellectual property
Royalty rate
The percentage of revenue or income paid to the owner of intellectual property for its use by a licensee.
Spin-out
A new or separate company or entity created to commercialize intellectual property or technologies developed within an organization such as a research intensive university.
Startup
A newly established business venture often built around innovative technologies or intellectual property, with high growth potential. In the context of a university, many student-led ventures are considered startups.
Technology transfer
The process of transferring intellectual property, knowledge or technology from one organization to another for commercialization.