“Importance and benefits of IP audit and valuation”

Kiyoshi Tsuru

IP value for startups

• Most valuable asset of a technology startup.

• Essential to obtain funding.

• Reduces operational risks.

•Brings opportunities for future growth andexpansion through sales, licensing, oracquisition.

•Competitive advantage to get distinctionfrom market competitors.

80% of the value of a startup is

based on their IP portfolio.

k

Innovation Ecosystem

FundingOrganizations

Public entities

Research centers and universities

Incubators

Clusters

Market opportunities

IP audit and valuation

Portfolio strategic management

Audit and review

Portfolio analysis and due diligence

Valuation

• Identify IP assets.

• IP asset management.

• Asses and manage risks.

• Check for infringements.

• Uncover unused assets.

IP Due diligence

Fixes needed.

Is it protected?

Restrictions?

Identify IP.

Identify owners

Identify creatorsDue

Diligence

Value of an IP asset

Ability to exclude competitors from a particular market.

Quantifiable value: Direct exploitation Sale or licensing deals. By ownership:

Minimizing the negation power ofcostumers. Mitigating rivalry. Offsetting supplier power. Raising barriers to entry by competitors.

Reducing the threat of substitutes.

Minimum Viable Product - MVP

“Your Minimum Viable Product Is Your Most Valuable Player”

Value of a Patent Per Se

•Value of fully commercializing theunderlying Invention:a) in the presence of patent protection.b) in the absence of patent protection.

• Value of the Patent Per Se = a) - b)Valuating the potential extra profits obtainablefrom fully exploiting the invention in the patent’spresence compared with those obtainablewithout patent protection.

EBITDA = Earnings Before Tax + Interest +Depreciation + Amortization.

Enterprise Value = (market capitalization + valueof debt + minority interest + preferred shares) –(cash and cash equivalents).

EBITDA Multiple = Enterprise Value / EBITDA

Factor

5x

8x

10x

EBITDA

Reasons for Valuation

Motebo. Textile Motherboard

MoTeBo

Empower Wearable Technology & Internet of Things

Co-exhibitor with

México Partner Country 2018

MoTeBo

Empower Wearable Technology & Internet of ThingsCo-exhibitor with

México Partner Country 2018

Motebo. Textile Motherboard

Kol Mexico. Organic Bioregenerator

Kol Mexico. Organic Bioregenerator

1st place INADEM High Impact Project INADEM

Kol Mexico. Organic Bioregenerator

2018 BSA Global Cloud Computing

GLOBAL SOFTWARE SURVEY 2018Unlicensed Software Use

16%

26%

52%

56%

57%

57%

0% 10% 20% 30% 40% 50% 60%

North America

Western Europe

Latin America

Middle East & Africa

Central & Eastern Europe

Asia-Pacific

GLOBAL SOFTWARE SURVEY 2018Commercial Value of Unlicensed Software

16%

26%

52%

56%

57%

57%

0% 10% 20% 30% 40% 50% 60%

North America

Western Europe

Latin America

Middle East & Africa

Central & Eastern Europe

Asia-Pacific

Porsche Tower, 19th floor, Col.El Yaqui,

Del. Cuajimalpa, P.C. 05320, Mexico City, Mexico.

+52 (55) 5652 2021

www.tmilaw.com.mx

contact@tmilaw.com.mx