Glossary of terms
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A
Appellation of origin
A special kind of geographical indicator where the characteristics or quality, including the raw materials and processing of the product, is entirely reliant on the place of origin. See Geographical indicator for more details.
Appraise
Appraise is Inngot's interactive action plan product, which takes the information you enter into your Goldseam asset profile and uses it to highlight the actions and opportunities to manage and strengthen your IP. Click here for more information.
B
C
Contracted income
This refers to turnover that is guaranteed to be received as a result of contracts that are already signed and secured.
Cost-Based Calculations
Cost-based valuation methods determine the value of an intangible asset based on the cost to create or replace it. The Historical Cost Method involves valuing the asset at the original cost incurred to develop or acquire it. Alternatively, the Replacement Cost Method estimates the cost to replace the asset with a similar one at current prices. These methods are straightforward and rely on actual expenditures, making them useful when market data is scarce.
Design rights
These are formalised registrations that protect the visual appearance (shape, design, configuration or colour) of new and distinguished products that have a physical and tangible form. The registration lasts for 5 years and can be extended to a maximum of 25 years.
E
EBITDA
Standing for Earnings Before Interest, Taxation, Depreciation and Amortisation, EBITDA is usually used to judge how a business is performing and whether it is in a position to repay debts. It can be calculated by adding interest, taxes, depreciation and amortisation onto net profit.
Espacenet
A publicly available, free online service for searching patents and patent applications that have been filed in over 100 patent-granting authorities.
F
G
Geographical indicator
Signs to be used on goods that originate from a specific region with a reputation, quality or characteristic that is a direct result of that origin. This can indicate that the product consists of raw materials from that area, is produced in that area, or is reputationally linked to that area. In most cases, the indicator will include the name of the place of origin.
Goldseam
Our free online asset profile tool, which takes users through their IP and intangible assets step-by-step, and allows them to describe their intellectual property using careful curated lists, bringing all the information together into an accessible, downloadable and shareable PDF document.
Gross profit
The profit a business makes once all costs relating to the manufacturing and selling of their products and/or services have been deducted. This figure can be calculated by deducting the cost of goods sold from total revenues or sales.
H
Hallmarq
When pursuing IP-backed lending, Inngot's Hallmarq platform will help to assess your IP's suitability as potential collateral, as well as how much could be lent against it.
I
Income-based calculations
Income-based valuation methods estimate the value of an intangible asset based on the future economic benefits it will generate. The most common approach within this category is the Discounted Cash Flow (DCF) method, where future cash flows expected to be generated by the asset are projected and then discounted back to their present value using an appropriate discount rate. This method considers factors such as revenue growth, operating costs, and the risk associated with the asset. This method is particularly useful for assets like patents or trademarks that directly contribute to future earnings.
Intangible assets
Intangible assets are non-physical assets that hold value for a business or organisation. These assets are not tangible, meaning they cannot be seen or touched, but they are essential for the company's operations and can contribute significantly to its overall value. For example, software.
Intellectual capital
Intellectual capital is a term used to describe the full range of non-physical resources a business can access. That includes team skills and know-how and software licenced in from other people.
Intellectual property
Intellectual property (or IP) refers to creative work which can be treated as an asset or physical property. Intellectual property rights fall principally into four main areas; copyright, trademarks, design rights and patents.
J
K
L
Licensed income
This income is received as a result of licensing whole or part of your IP to a third party, where the licensee contractually assumes all distribution cost and risk, and the licensor is no longer responsible for providing any maintenance or support, and has no relationship with or knowledge of the end user.
Lifespan
The lifespan of your IP is the remaining period for which your IP can stay in it's current state before it will require any significant re-design or re-engineering in order to remain competitive and commercially attractive.
M
Market Comparison
Market comparison, or the Market Approach, values an intangible asset based on the prices of similar assets that have been bought or sold in the market. This method relies on identifying comparable transactions and adjusting for differences between the subject asset and the comparables. Key metrics used include transaction prices, revenue multiples, and industry benchmarks. This approach is intuitive and grounded in actual market behaviour, making it particularly useful for assets like brands or customer lists where comparable market data is available. However, it can be challenging to find truly comparable transactions, especially for unique or highly specialized assets.
N
O
Operating costs
These are the day-to-day running costs of a business, including payroll, utilities, equipment maintenance, insurances and rent.
P
Patents
A patent is a formalised and exclusive right that provides protection against unauthorised use or commercialisation of a product or process invention that provides an new method or solution to a problem. They are a form of registered right.
Q
R
Registered rights
This is the umbrella term for all forms of formalised exclusive rights, specifically patents, trademarks, design rights, geographical indicators, utility models and copyrights. The former 3 categories are registrable in all territories, while the latter 3 are only registrable in certain territories.
S
Saleability
Whether there is a market for your assets, should they require or become available for sale.
Separability
How easy it would be to separate an asset or bundle of assets from a larger bundle of assets or a business without impacting the value of those separated assets.
Sollomon
Inngot's online IP valuation platform, Sollomon, can be used by revenue generating companies (and those close to market) to determine income based, cost based and market based valuations for a company's IP and intangible assets.
Strength
In financial terms, whether assets have characteristics that would render them attractive to potential buyers.
T
Trademarks
A trademark can cover a recognisable sign, design or expression that distinguishes a particular product or service. It can be used to protect your brand, products or services from use by others without permission for 10 years, after which point it must be renewed in order to remain fully enforceable.
Trade secrets
They can include processes, formulas, designs, practices, patterns or information, any or all of which have an inherent economic value, and are informally protected so that they remain not generally known.
U
Unregistered design rights
Operating in a similar way to copyrights, unregistered design rights are automatically attached to a design for a new, tangible product. The protection it affords is limited to a period of 10 years from the date of the first sale, or 15 years after it is first created.
Unregistered trademarks
Recognisable signs, designs and expressions that are not registered with recognised formal bodies can still enjoy a level of enforceable protection if the trademark owner is able to prove ownership, that a reputation has been built upon it, and that unauthorised use is causing harm to the owner's business.
Utility model
On registrable in some countries, utility model registration provides limited protection for more 'minor' technical inventions, using a system that is similar to patent registration. They are typically used for inventions that make improvements or adaptations to existing products and provide protection for a shorter period than patents, though those periods vary from country to country.