Appraisal of results of intellectual activity and means of individualization
Appraisal of property becomes necessary in cases which could be nominally divided into two groups, depending on the nearest perspectives which determine the destiny of such property or activity of the enterprise using it in commerce.
The first group comprises the cases when the legal status of the matter to be appraised or enterprise changes:
• An on-coming deal involving the sale or purchase of the property to be appraised;
• Forthcoming division of property among the enterprise owners;
• Planned separation of a small and viable company from some large concern;
• On-coming merger or acquisition of one entity by another;
• Anticipated reorganization of the company (e.g. a closed joint stock corporation becomes an open joint stock corporation);
• Expected liquidation of a legal entity;
• Effective announcement on alienation of the state-owned property.
The second group deals with the situations when the legal status of the property to be appraised or enterprise using such property does not change:
• Emersed necessity to make a contribution in the form of intangible assets into a charter capital (in Russian practice more than 90% of IP appraisal deals correspond to this purpose);
• Requirement to substantiate the royalty amount in view of expected license agreement conclusion;
• Necessity to calculate the remuneration due to authors with respect to IP used by the company;
• Need to calculate the damages caused, for example, by the IP infringer;
• Planned bank credit secured by the IP rights of the holder;
• Current preparation of a business plan for the purposes of investments attraction;
• Calculation of succession duties or donor’s tax;
• IP insurance
The above-stated is far from being a full list of all possible cases appearing in commercial practice.