The Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development of the Department of Science and Technology (DOST-PCAARRD) continues to strengthen intellectual property (IP) expertise in the country with the successful third installation of its IP Valuation Course held on January 14-16, 2025.
Organized in collaboration with the Licensing Executives Society (LES Philippines), Association for Management and Valuation of Intangibles (AMAVI), and SyCip Salazar Hernandez & Gatmaitan (SyCipLaw), the training brought together experts and managers from various sectors to enhance their knowledge in market research, IP valuation concerning technology commercialization, investments, business decision-making, and the role of IP in the business model.
The training included 21 participants from various organizations, including eight private law and consulting firms, eight higher education institutions, and DOST-PCAARRD.
Learning the basics of IP Valuation from experts
Dr. André Gorius, AMAVI treasurer, kicked off the first day of the program by presenting examples of valuation reports and introducing the assignment review. He also discussed IP valuation terminology such as value, fair market value, liquidation value, depreciation, and amortization.
Dr. Sean Moolman, founder of the Moolman Institute and Chief Operating Officer (COO) of PowerOptimal, discussed licensing, sales, and purchasing. He mentioned several factors to consider for IP valuation.
Mr. Brian More, chief executive officer (CEO) of Mathys & Squire Consulting, shared his expertise in venture capital, joint ventures, mergers, and acquisitions.
A deep dive into IP Valuation
The second day of the training focused on a comprehensive review of market research, financial modeling, and asset valuation.
Dr. Tanja Sovic, LES International Innovation Trends Committee chair, highlighted the importance of market research. She tackled primary and secondary research methods and demonstrated how databases and publications can help in understanding market trends, sales projections, and cost estimation.
Dr. David Drews, founding member and president of IPmetrics LLC, and Dr. Gorius explained various factors and methods for valuing intellectual property assets. They emphasized the role of comparables, market data, and adjustments. On the other hand, Dr. Moolman expounded on financial modeling concepts such as Total Addressable Market (TAM), Serviceable Addressable Market (SAM), and Serviceable Obtainable Market (SOM), presenting practical approaches in estimating market size, sales, and costs.
Mr. Levente Pethő, AMAVI vice president, had an in-depth discussion on the concepts of useful life and economic life in the context of IP assets and how these are utilized in financial reporting and valuation. He discussed the calculation of economic life for various IP assets, such as patents and copyrights, providing jurisdiction-specific data and real-world examples. He also discussed the importance of interactivity, compliance, and a structured six-step process in valuation, consisting of defining context, collecting information, analyzing data, and conducting due diligence.
Experts emphasize market research and IP valuation for businesses
The last day started with the presentation of Dr. Sovic on the critical role of market research and IP in molding business models in the context of conducting valuations. She emphasized that understanding market dynamics and leveraging IP assets can significantly affect the accuracy and effectiveness of a valuation.
Group discussions were also carried out for participants with the guidance of Dr. Gorius and Mr. Sam Wiley, Strategic Business Intelligence Lead for Specialty Services. Participants discussed and collaborated amongst themselves regarding their outputs and study analyses.
The valuation training was concluded with a closing ceremony led by Atty. Vida M. Panganiban-Alindogan, president of LES Philippines. She provided an insightful talk on #ProjectCollab and the critical role of IP valuation in fostering collaboration and innovation.
DOST-PCAARRD Executive Director Reynaldo V. Ebora delivered the closing remarks. He expressed appreciation for the program's success and its impact on all participating organizations.
With DOST-PCAARRD’s initiatives in hosting relevant capacity-building initiatives in collaboration with various agencies, agri-based businesses, innovations, and technologies continue to be honed to help the nation.