IPBI_PJD

Intellectual Property Business Information Services B.V. [IPBI]

Peter-Jan Dullaert

[email protected]

introducing patent valuation

new indicators (not only) for the financial market

IPBI is an innovative software

firm, specializing in Intellectual

Property valuation.

The company was founded in 2014

as a Spin off from Lighthouse IP

group (NL) and IPR Systems (DE).

Headquartered in Amsterdam with

offices in Berlin and Stuttgart

About IP Business Information

Patents are the key to their business…

What do these companies have in common?

A known picture….or unknown picture..

For an ever increasing

number of companies their

IP is the essence of the

business.

Business info show

revenue, size, balance

total, market cap, profit…

sometimes trademarks,

but not Patents.

A major hidden value…

Share of intangible assets on company values – 1975-2015

The impact of patents

The value of a (technical, scientific) company nowadays is determined

by up to 80% by the Intellectual Properties (Patents, Utility Models).

These assets are mostly unknown or very difficult to gather

Companies with good patents have a much higher value than

known from their balance and a value potential for the future

IP assets

(unknown so far)

book value

company value

The impact of patents

IPBI has valued all patents worldwide

with a unique approach and stored them in

a database.

The development of the methodology and

data production required more than 35

person years of development since 2008.

RESULT: up to 25 different value indicators

and patent family values were generated

offering unique additional information to

different target groups of customers.

2014(e)

IP relevance A

Technical Quality B

Market Attractiveness B

Market Coverage B

IP Efficiency A Value Trend +

And now something completely new…

© IP Business Information B.V. 2015

Portfolio Management & Monetization

• Patent sales/purchases

• Licensing/cross-licensing agreements

• IP valuation for funding

• IP valuation for court proceedings

• In-kind contributions to joint ventures

• Technology benchmarks

• Market assessments

Financials

• M&A purchase price allocation

• Portfolio valuations for transfer pricing – due dilligence

• Balancing of intangible assets (IFRS) for reducing interest rate

• Shareholder interests, stock value

Why valuating patents? Cui bono?

Data samples: Basic qualitative ranking [BQR]

TechnologyStrength

Technical quality of the patent grants and applications, “A” indicates an average high technical quality

Market Coverage

Size of the patent families in different countries, an “A” indicates that the most relevant markets (biggest economies) are covered with the IPR

Value Trend IP value development compared to former year, + means that the value increased at least 5%, - means they decreased at least 5%

IPefficiency Value distribution of the patent families in the portfolio, “C” indicates that there only few patent families (<10%) who are determining at least 80% of the portfolio, the other 90% of the patent families are of low value, “A” indicates that the IP values are well distributed, most patents are substantial. This indicator is available only if there are more than 50 patent families


Data samples: Basic qualitative ranking [BQR]

Company

Company Key figures

Bauer Bertrandt

Biotest Cewe Deutz KWS Saat Puma Rational SAF Holland

Schaltbau

Technology Strength

A B A B A A A A B B

Market Coverage

B C A C C A A B B B

Value Trend + 0 0 - - 0 - 0 + +

IPefficiency B n/a B n/a B B B B A A

Patentfamilies 319 4 58 12 218 67 80 376 149 142


Data samples: Extended qualitative ranking [EQR]

Assess key figures of a single companyby comparing them with benchmarks: Example „Technology strength“

Question: How strong are the patents of the company regarding their claimedtechnology?

Answer: the company‘s patents are rated with A - better than the average in the same technical field but worse than the benchmark.

Technology strengthMedian value

Worst knownvalue

Best knownvalue(benchmark)



Assess key figures of a single companyExample „Market Coverage“

Question: How strong are the patents of the company regarding themarkets they are addressing?

Answer: the company‘s patents are rated with B, this means they areclose to the median but in this case they are even worse.

Market Coverage



Assess company key figures in comparison, e.g. by comparing competitors

Question: Who has the best technical patents compared to other SDAX corporations?

Answer: in the above comparison KWS Saat keeps the most interesting ones froma technical point of view



Assess company key figures in comparison, e.g. by comparing competitors

Question: Who addresses the most interesting markets regarding innovations andsustainable growth compared to other SDAX corporations?

Answer: in the above comparison Gesco and Bauer seem to address the interestingmarket fields here are currenty most innovations done.


Patent valuation on corporate level

Looking behind the scenes: Bauer AG has the highest hidden IPR assets in relation to it‘sclaimed intangible fixed assets

Ratio: IP value/intangible fixed assets

Access company‘s IP-asset potential by comparing the IP assets to the intangible fixed assets of a single company or in comparison to others



Assess company‘s IP-asset trendby comparing the IP assets from one year to another, single or in comparison

Question: Who insists in innovation?

Answer: in the above comparison Grammer and KWS seem to invest most into innovationduring the last years

IP-Value distribution over 3 years in 1000 €


Data samples: Monetary value of the completepatent portfolio of a company [MVC]

min max min max

Bauer A A A B B 319 -12,54% 21.309.917 € 40.420.000 € 26.931.776 € 50.820.000 €

BERTRANDT C B A C n/a 4 -8,13% 60.000 € 130.000 € 90.000 € 160.000 €

BIOTEST B A A A B 58 6,47% 3.969.365 € 7.570.000 € 4.131.681 € 7.820.000 €

CEWE C B A C n/a 12 -2,76% 219.607 € 420.000 € 240.000 € 470.000 €

DEUTZ A A B C B 218 -7,71% 20.609.857 € 38.799.701 € 22.343.105 € 42.027.517 €

Gesco B A A B B 60 10,94% 2.857.651 € 5.339.275 € 2.838.206 € 5.289.254 €

Grammer A A B B B 341 10,25% 20.350.703 € 37.920.859 € 20.300.753 € 37.841.247 €

Jungheinrich B B A B B 446 -10,41% 17.492.731 € 32.688.707 € 21.481.823 € 40.130.103 €

KWS Saat A A A A B 67 8,72% 18.571.113 € 34.804.633 € 18.792.310 € 35.211.478 €

Puma C A B A B 80 -0,37% 3.761.095 € 7.053.989 € 4.155.099 € 7.785.291 €

Rational A A B B B 376 9,20% 18.458.075 € 34.479.687 € 18.582.534 € 34.744.070 €

SAF Holland A B A B A 149 6,71% 8.023.107 € 15.190.000 € 8.204.077 € 15.680.000 €

Schaltbau A B A B A 142 -4,40% 4.107.325 € 8.160.000 € 4.809.334 € 9.330.000 €

IP rele-

vance

2014 2013Technica l

Qual i ty

Market

Attractive-

ness

Market

Cover-

age

IP

efficien-

cy

fami l ies

2014

IP value

trend


- Financial department (CFO/CEO)- IPR department- Strategic Business Intelligence- Legal department (M&A, Licensing)- Supplier rating

Who are interested in this information?

IP Business Information B.VSuikersilo-Oost 91165 MS Halfweg-AmsterdamThe Netherlands

Phone: +31 655204988Fax: +31 85 8000 025

[email protected] www.ip-bi.com

Documents

IPBI_PJD