The Features of Market Value Assessment of the Objects of Intellectual Property When Conducting Forensic Expertise

• Main Author: K. H. Mamikonyan
• Format: Article
• Language: Russian
• Published: Ministry of Justice of the Russian Federation, Russian Federal Centre of Forensic Science 2019-07-01
• Series: Теория и практика судебной экспертизы
• Subjects: forensic expertise; object of intellectual property; discount rate of objects; assessment
• Online Access: https://www.tipse.ru/jour/article/view/513

Illicit use of intellectual property violates the rights of the person/company that owns it. The expertise of intellectual property in many ways helps to restore justice in cases of rights violation. To conduct such expertise the knowledge of not only the intellectual property rights is required, but also of the activity to which the disputed intellectual property belongs. The article discusses some approaches to assessment of the market value of intellectual property, for instance it is assumed that when calculating the discount rate of intellectual property (for example, a brand), a company’s weighted average cost of capital (WACC) can be used. A hypothesis is substantiated that the methodology for determining discount rates using the “traditional” approach, when the discount rate takes all risks into account and is applied to the most probable values of the income measure, is based on the direct observations on the capital value market for a business. It is noted that the discount rate for intangible assets not necessarily should differ from that for a business. Thus, WACC assessment method is a discount rate for the invested capital. The method of estimating the discount rate based on WACC, shows the rate of return to be paid for the use of investment capital. The latter may consist of two sources of financing: own capital and debt capital. The article provides a thorough and detailed analysis of the WACC and notes that it can be used in both financial and investment analysis to assess future returns on investments, considering the initial conditions for profitability of investment capital.