Measuring IP value: A tough game

Valuing intellectual property is complex and often imprecise. Unlike physical assets, IP lacks a standardized market value and is highly sensitive to shifts in technology, competition, and regulation. Its worth is typically tied to future potential rather than current performance, making traditional valuation models unreliable.

IP assets are volatile, prone to rapid obsolescence, and carry hidden risks like infringement and enforcement costs. Effective valuation demands cross-functional insight, combining legal, financial, and strategic perspectives.