Meyer & Associates, L.L.C.

Intellectual property comprises the most valuable assets of modern business. Historically, land was the principal measure of value of business because of the income which could be derived from farming. Then with the industrial revolution capital goods (manufacturing equipment and factories) became the principal repository of value because of the income which could be obtained from making and selling goods. With the information revolution and the modern economy the most valuable asset of business is intellectual property. While steel mills, automobile factories, shoe factories and the like have less and less value because of lower cost foreign competitors, the centerpiece of the American economy consists of patents, copyrights, trade secrets, and trademarks. Almost all the value of media companies is based upon their right to exploit their "content" and the trademarks associated with the content.

Consider Disney and their worldwide business built upon the exploitation of trademarks and copyrights. What makes Bill Gates the richest man in America? Software and a couple of trademarks. Consider the power of the names Microsoft and Windows. Consider the copyrights and thousands of software patents owned by Microsoft. What makes Intel such a success? Not the chip factories which become obsolete in a couple of years and have to be rebuilt. The value is in the innovation of the product. This innovation is protected by patents, trade secrets, copyrights, and trademarks. The name Pentium was intended to distinguish the new generation of microprocessor chips from the earlier versions bearing only numbers; numbers which competitors could and did use to describe their clones. What is the value of "Intel Inside?" Billions of dollars!

Few businesses today can operate without computer systems, often with software customized for the restaurant, the dry cleaner, the auto mechanic, the oil drilling company, the telephone company, the employment agency, and the tax accountant. These systems incorporate a wealth of experience and knowledge which give that business an edge over competitors and permit better, faster and cheaper products and services for their customers. Customers demand this and competitors will provide better technological solutions unless you do first. Every new idea, invention, expression, process, and name is intellectual property which makes your business more valuable. However, the value is only as good as the protection you give it. It does no good to fill your house with valuables if you fail to lock the door. MEYER & ASSOCIATES, LLC can help you create the lock for your property and give you the key.

It is often necessary to place a value on intellectual property. The reasons may be to obtain financing based upon their value to the business or to determine the value in the event of infringement or to determine the value of these assets in a bankruptcy in order to protect creditors.

Often the real value of intellectual property is seriously understated because some people think only in terms of the money and time spent developing it, as if anyone, with no special talent and insight, could duplicate what you have done. Of course this is wrong. If you are making money from the product of your intellect that proves that the product is superior to whatever else there was in the marketplace before. If you can make money with your intellectual property, someone else can do so too. All they have to do is take your property from you.

Lenders and investors sometimes do not see the value of intellectual property. It can only be given a value above "book value" if it is compared with its alternatives. Usually this requires an expert on the subject. This is like an appraisal of jewelry. With the appraisal, it is possible to convince others of the unique and valuable nature of the intellectual property. The expert should be someone with experience and knowledge of intellectual property

Meyer & Associates, LLC
17462 E. Powers Drive, Centennial, Colorado 80015, USA
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