Pilz, Bryce --- "Modern intellectual property valuation in the academic technology transfer setting" [2020] ELECD 303; in Rooksby, H. Jacob (ed), "Research Handbook on Intellectual Property and Technology Transfer" (Edward Elgar Publishing, 2020) 166

Book Title: Research Handbook on Intellectual Property and Technology Transfer

Editor(s): Rooksby, H. Jacob

Publisher: Edward Elgar Publishing

Section: Chapter 8

Section Title: Modern intellectual property valuation in the academic technology transfer setting

Author(s): Pilz, Bryce

Number of pages: 29

Abstract/Description:

This Chapter explains the role of intellectual property valuation in the context of the modern academic technology transfer office. Historical valuation approaches, such as cost, income, and market value, are still important tools that guide valuation discussions for the variety of deal structures confronted by technology transfer offices (“TTOs”), which increasingly include sophisticated equity and royalty buyout considerations. As the role of TTOs continues to evolve, this Chapter suggests that universities will adopt a broader (i.e. non-monetary) view of the value provided by their TTO, such as: university and TTO brand recognition, faculty and student recruitment, economic development, entrepreneurial opportunities for students and faculty, in addition to the ultimate goal of improving the world with products created from cutting-edge academic research. Accordingly, this Chapter proposes that TTOs will increasingly adopt portfolio-based valuation thinking, allowing TTOs to align their deal-making practices to maximize the full value (both monetary and non-monetary) of their university’s intellectual property portfolio.