Intellectual Property
Intellectual Property rights, contractual rights and intangible assets are often significant sources of value and therefore central to commercial activity. As a result, their protection is important and their value, or their contribution to overall value, is often scrutinised in a variety of contexts. FTI Consulting, and our subsidiary Compass Lexecon, have a deep understanding of these situations, and have the breadth and depth of experience to provide economic and financial advice on intellectual property matters where thoughtful and tailored analysis is vital.
How we help
Our practice includes valuation, damages and licensing advice in commercial, regulatory and contentious contexts. We advise across the full spectrum of IP assets across a wide range of industries, including:
- patents and know-how;
- trade marks and brands;
- copyright and creative content;
- software;
- database rights and customer lists;
- design rights;
- confidential information; and
- idiosyncratic, contractual or statutory rights and obligations.
Our team contains accountants, economists and econometricians, each with practical experience of intellectual property matters. Our opinions are informed by the disciplined application of economics and finance frameworks, and rigorous analysis of the underlying data. We have the experience to gauge the appropriate valuation methods to deploy in specific contexts, particularly in cases where information is scarce or hard to interpret.
We understand the relevant factors, such as accepted or preferred valuation approaches and practices, contractual or statutory frameworks and case law precedent that can determine or influence value. We are conversant with the differing evidential and documentation requirements in the different contexts in which intellectual property rights are assessed.
In addition, we have experience in supporting the enforcement of intellectual property rights and obtaining and analysing data on which to found claims.
How We Help
Claims & Disputes
We have specific expertise acting as independent expert witnesses in intellectual property disputes, where...
We have specific expertise acting as independent expert witnesses in intellectual property disputes, where our team has provided extensive written and oral testimony before domestic and international courts and tribunals. We provide associated commercial advice and assist in settlement negotiation. We work closely with clients, their legal advisers, witnesses of fact and experts in other technical disciplines to provide robust and coherent testimony.
Our experience includes:
- calculation of damages, assessment of reasonable royalties and account of profit cases;
- guidance during the election process;
- the assessment of Fair Reasonable and Non-Discriminatory terms for licensing standard-essential patents;
- references to the UK Copyright Tribunal;
- software licensing;
- licensing and royalty disputes and audits;
- licences of right;
- resolution of intellectual property disputes through international arbitration, mediation and expert determination; and
- professional negligence claims relating to intellectual property rights or their valuation.
Commercial Transactions
We provide assistance during a commercial transaction process, recognising that many commercial transactions...
We provide assistance during a commercial transaction process, recognising that many commercial transactions occur in the context of a regulatory framework, or where there is the potential for dispute. We advise in a variety of commercial situations such as:
- transactions – we assist in transactions involving specific intangible assets, portfolios of intellectual property rights or companies whose value depends on underlying intangible assets. We provide independent opinions in fundraising and due diligence processes;
- licensing – we advise on royalty rates, licence structures and negotiating considerations, taking into account the rights and obligations of the parties to the licence. We base our advice on the specific circumstances and terms of the licence, detailed economic and financial analysis, as well as industry norms and practices where appropriate;
- security reviews – restructuring and insolvency processes where we advise on the potential recoverable values; and
- investment appraisals – such as valuation of new technologies and brand extensions
Regulation and Governance
The exploitation of intellectual property rights, including transactions between related parties, is increasingly...
The exploitation of intellectual property rights, including transactions between related parties, is increasingly monitored by fiscal, accounting and competition regulators. We provide robust economic and financial advice in this context. We have worked alongside taxpayers, tax authorities and other regulators on matters such as:
- fiscal valuations and transfer pricing of intangible assets, including under the UK legislation and OECD transfer pricing guidelines;
- financial reporting for intangible assets under UK and International Financial Reporting Standards;
- transfers between related parties, where a board or trustee requires independent advice, or an administrator is examining if intangible assets were transferred at undervalue; and
- public policy issues such as the regulation of consumer goods brands.
