top of page
Writer's picturea22162

Valuing IP


Valuing IP | Bestar
Valuing IP | Bestar

What is Intellectual Property?


Intellectual property (IP) in Hong Kong refers to creations of the mind, such as inventions, literary and artistic works, designs, and symbols, names, and images used in commerce. Intellectual property can be protected by patents, trademarks, copyrights, and other forms of intellectual property rights.

The Hong Kong government has a number of laws and regulations in place to protect intellectual property, including the Patents Ordinance, the Trade Marks Ordinance, and the Copyright Ordinance.

The Intellectual Property Department (IPD) is responsible for administering these laws and regulations. The IPD also provides information and advice on intellectual property protection to businesses and individuals in Hong Kong.

Here are the different types of intellectual property protected in Hong Kong:

  • Patents: Patents protect inventions that are new, useful, and non-obvious. An invention can be a product, a process, or a new way of doing something.

  • Trademarks: Trademarks protect words, names, symbols, and images that are used to identify the goods or services of a particular business.

  • Copyright: Copyright protects original literary, dramatic, musical, and artistic works, such as books, movies, songs, and paintings.

  • Designs: Designs protect the appearance of products, such as the shape, pattern, or color of a product.

  • Plant varieties: Plant varieties protect new varieties of plants that have been bred or discovered.

  • Geographical indications: Geographical indications protect the names of products that come from a particular region and have a certain quality, reputation, or other characteristic.

Intellectual property is important for businesses because it can help them to protect their ideas and creations, and to prevent others from copying them. Intellectual property can also be a valuable asset, and it can be used to generate revenue through licensing, franchising, and other means.

If you have any questions about intellectual property protection in Hong Kong, you can contact the Intellectual Property Department (IPD). The IPD website has a wealth of information on intellectual property protection, and you can also contact the IPD by phone or email.


Valuing IP


Valuing intellectual property (IP) in Hong Kong can be a complex process, as there are a number of factors to consider, such as the type of IP, its legal status, its commercial value, and the market conditions.


The three main methods for valuing IP in Hong Kong are:

  • Income method: This method values IP based on the income it is expected to generate in the future. This is the most common method for valuing IP, and it is often used for patents, trademarks, and copyrights.

  • Market method: This method values IP based on the prices paid for similar IP assets in recent transactions. This method is less commonly used in Hong Kong, as there is limited data on the sale of IP assets.

  • Cost method: This method values IP based on the cost of creating or developing it. This method is rarely used for valuing IP, as it is often difficult to determine the actual cost of creating or developing IP.

The choice of valuation method will depend on the specific IP asset being valued and the purpose of the valuation. For example, the income method may be the most appropriate method for valuing a patent that is expected to generate significant revenue, while the market method may be more appropriate for valuing a trademark that is well-known in the market.


In addition to the valuation method, there are a number of other factors that can affect the value of IP in Hong Kong, such as:

  • The strength of the IP protection: The stronger the IP protection, the more valuable the IP asset is likely to be.

  • The marketability of the IP: The more marketable the IP asset is, the more valuable it is likely to be.

  • The competitive landscape: The more competitive the market, the more valuable the IP asset is likely to be.

The valuation of IP is a complex process, and it is important to seek the advice of an experienced IP valuation expert to ensure that the valuation is accurate and fair.


Here are some additional resources that you may find helpful:


Intellectual Property Reporting Standard


The Intellectual Property Reporting Standard (IPRS) is a part of the Business Valuation Standards (BVS) in Hong Kong. It provides guidance on the reporting of intellectual property (IP) valuations. The IPRS is issued by the Hong Kong Business Valuation Forum (HKBVF).


The IPRS covers the following topics:

  • The purpose of the report

  • The scope of the valuation

  • The valuation methodology

  • The valuation assumptions and limitations

  • The valuation results

  • The report format

The IPRS also provides a checklist of items that should be included in an IP valuation report.


The IPRS is a useful resource for business valuators who are required to report on IP valuations. It helps to ensure that the reports are accurate, transparent, and consistent with international standards.


Here are some of the key requirements of the IPRS:

  • The report must be prepared in accordance with the BVS.

  • The report must identify the purpose of the valuation and the intended users of the report.

  • The report must describe the scope of the valuation, including the assets that have been valued and the assumptions and limitations that have been made.

  • The report must describe the valuation methodology that has been used.

  • The report must present the valuation results, including the fair value of the IP assets.

  • The report must be signed by the business valuer who prepared the report.

The IPRS is a mandatory standard for business valuators in Hong Kong. However, it is also a useful resource for other stakeholders, such as investors, lenders, and lawyers. The IPRS helps to ensure that IP valuations are conducted in a professional and transparent manner.


How Bestar can Help


Bestar is a leading valuation firm in Hong Kong. We provide a comprehensive range of IP valuation services, including:

  • Patent valuation

  • Trademark valuation

  • Copyright valuation

  • Design valuation

  • Plant variety valuation

  • Geographical indication valuation

We have a team of experienced IP valuation professionals with a deep understanding of the Hong Kong IP market. We use a variety of valuation methods to ensure that our valuations are accurate and reliable.


We can help you to value your IP assets for a variety of purposes, such as:

  • Raising capital

  • M&A transactions

  • Licensing agreements

  • Infringement disputes

  • Taxation purposes

We are committed to providing our clients with the best possible service. We are always available to answer your questions and to help you understand the valuation process.


Here are some of the ways Bestar can help you with valuing IP in Hong Kong:

  • We can provide you with a free consultation to discuss your IP valuation needs.

  • We can help you to identify the appropriate valuation method for your IP assets.

  • We can collect and analyze the data necessary to conduct the valuation.

  • We can prepare a comprehensive valuation report that is compliant with international standards.

  • We can provide expert testimony in IP valuation disputes.

If you are looking for an experienced and reliable IP valuation firm in Hong Kong, please contact Bestar today. We would be happy to help you with your IP valuation needs.


Here are some of the benefits of using Bestar for IP valuation in Hong Kong:

  • We are a leading IP valuation firm with a team of experienced professionals.

  • We use a variety of valuation methods to ensure that our valuations are accurate and reliable.

  • We are committed to providing our clients with the best possible service.

  • We are always available to answer your questions and to help you understand the valuation process.

If you are looking for a reliable and accurate IP valuation in Hong Kong, please contact Bestar today. We would be happy to help you with your IP valuation needs.

3 views0 comments

Comments


bottom of page