Our client owns IP rights in relation to a notable artist, illustrator and author, having created and published a best-selling book as well as globally recognizable artwork for children’s books, private collections, galleries, and public spaces such as hospitals and churches. The IP Portfolio has generated royalty-based revenues of circa £7m and includes copyrights in relation to a best-selling book; the IP Rights to publish additional future books; and brand, trademarks and rights in relation to the author’s name and books.
Following the transfer of the IP Portfolio from the author to the Company, our client required an IP Valuation in order to accurately record and assign value to the Company’s various IP assets. Additionally, it required an IP Valuation to effectively amortize certain key IP assets for financial reporting and tax purposes.
Using our Metisology® approach, we performed a comprehensive analysis of the IP Portfolio, conducting an IP mapping exercise to determine the various IP rights owned by the Company, and their contribution to past and future revenue generation. This was important, as the Company required a valuation of each element of the IP Portfolio independently.
We performed an analysis of the global book publishers’ industry and the segments that provided the Company’s material revenues, such as the children and young adult books market. We additionally performed an analysis of author brand building and trademark registration in the industry, which we determined to be particularly relevant to the brand, trademarks and rights in relation to the author’s name and books. We assessed key drivers of industry growth, benchmarking this with the Company’s financial forecasts.
We delivered a defensible valuation in relation to each of the key elements of the IP Portfolio, providing detailed commentary around these and how they underpinned revenue generation. This informed Company Management in relation to amortizing key IP assets for financial reporting and tax purposes.