Monday, August 16, 2010

How do I figure value on a proven copyright?

My partner and I own several copyrights. One has earned us $310,000 in three infringment cases. We are in the process of dividing assets and dissolving our partnership and I have no idea of how to place value on the copyrights. On the one we've defended I thought 5% of proven earnings (15,500) would be pretty generous. Any ideas? Any experience? Any references?How do I figure value on a proven copyright?
Unfortunately, there are few, if any, hard and fast rules for valuating intellectual property. Your question is akin to someone asking: ';I have a house. How much can I sell it for?'; There are just too many factors to consider in a short space here.





In short, the value of your copyright is the value you can get on the market for it. Copyright value usually comes from reproduction rights and royalties. Obviously a current income stream for your copyright (e.g., from licenses) is helpful in determining a value..





You'd be wise to seek the aid of a intellectual property valuation service that can perform market research and find appropriate buyers.

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