What is an IP Strategy?
Your UK company can claim ownership and revenue attributable to products, services and know-how (“IP”) which it builds if:
It performs the “significant functions”, including new product conceptualization, governance processes for risk management, control of the development process and sales/business development functions
It can show that it independently provided the funding for the development process as well as the resources required to manage, control and commercially exploit the IP
It bears the essential commercial risks of success or failure of the IP and manages those risks.
So, your IP Strategy applies these to your company, and builds a framework for demonstrating that IP ownership in the UK.
What are an IP Value Drivers?
These are new and innovative IP features that are expected to disproportionately drive sales revenue and corporate value. We will help you to drill down into how each new IP Value Driver represents a value leap for the group, and how that value is placed in the UK. We will help you to develop a method to allocate specific value to each Value Driver, and to the UK company.
How can we really show that IP increases the company value?
There are really only two ways. The first is the informal value placed in the IP by management of the UK company, based on how the revenue/potential revenue is attributable to that IP. Subjective valuation factors could include comparing revenue earned before and after the launch of IP in question, explaining how the revenue model evolves in response to the creation of new IP, measuring the investment made by the UK company in developing the IP. The second method is to show hard, objective proof – e.g. investment by an independent investors, which assigns an explicit pre-money value to the UK company and is IP. Another example is a formal, independent valuation.
How do you differentiate new code from old code, to show that new code is owned by the UK company?
Code really just represents an IP feature that UK company creates. So we make sure that the IP feature is conceived and created in the UK, using your IP strategy. So, we focus on making sure that the feature is owned in the UK, and ownership of the code follows. The UK company can outsource the coding of that feature to anywhere in the world, and still retain ownership of the feature and the related code.