The Company, a developer and manufacturer of motorcycle accessories, had also developed a high-quality, high-performance chain lubrication system for motorcycles. Following extensive market research, the Company decided to capitalize on its expertise by expanding into a new market with its innovative product. This was to be launched through a new operating company, 'NewCo' which would assume responsibility for R&D, marketing and sales in relation to the new product.
Management needed assistance in identifying the extent and range of IP assets currently vesting in the Company, which underpinned the new product and therefore needed to be transferred to NewCo. The Company also needed to identify “platform” or shared IP which, if transferred, could pose a risk to the Company’s own operations and so should be subject to an inter-company licence. In addition, the Company required an appraisal of the of key IP assets to inform the IP transfer/transaction value.
Metis Partners performed an IP Audit to identify the relevant IP assets which would be relied upon by the NewCo, with a focus on identifying areas of weakness and risk where value could be undermined. We also provided a valuation of the IP assets in order to support their transfer to NewCo.
We carried out an on-site Metisology® day with management and key personnel, to map the Company’s IP assets to products/services and revenues and forecasts. We identified critical, yet informal, IP assets that we discovered existed in the Company and which it had not yet captured or documented.
Our IP Audit identified numerous IP assets underpinning key products both within the Company and NewCo which were to be transferred and subsequently licensed back.
We performed an independent valuation of the IP assets which informed the price of the transferred IP from the Company to NewCo. In addition, we also provided the Company with a full inventory of its IP assets and advice on how to mitigate risks that we identified. The Company implemented our recommendations which strengthened its IP Portfolio and improved the value of these IP assets in advance of its subsequent fundraising.
Critical IP Assets Valued: Patents, Technical Specifications Database, Trade Secrets, Brand & Reputation, Key Organizational Knowledge.
