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IP Valuation

Simon Mak edited this page Aug 11, 2026 · 1 revision

Intellectual Property Valuation

Valuation of patents, trademarks, copyrights, and trade secrets — Chapter 5.

Patent Valuation

Risk-adjusted income approach with probability of success weighting.

from intangible_valuation.asset_types.ip_valuation import patent_valuation
result = patent_valuation(
    remaining_life=10, cash_flow_projections=[100000]*10,
    probability_of_success=0.8, discount_rate=0.15,
)

Trademark/Brand Valuation

RFR or excess earnings with brand strength adjustments.

from intangible_valuation.asset_types.brand_valuation import trademark_valuation
result = trademark_valuation(
    revenue=1_000_000, profit_margin=0.20,
    brand_strength_index=75,  # 0-100 scale
    discount_rate=0.12, useful_life=10,
)

Copyright Valuation

PV of expected royalty/licensing income.

Trade Secret Valuation

Cost-income hybrid incorporating secrecy risk over time.

Real Options (Black-Scholes)

from intangible_valuation.asset_types.ip_valuation import real_option_valuation
result = real_option_valuation(
    expected_value=5_000_000, exercise_cost=3_000_000,
    time_to_expiry=5, risk_free_rate=0.04, volatility=0.35,
)

MCP Tools

patent_valuation, trademark_valuation, copyright_valuation, trade_secret_valuation

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