Design Evaluation

The design evaluation service provides the ability to determine the economic value of one or more design patents.

Design evaluation is one of the services in the practice area “Intangible assets evaluation“. The valuation concerns a single design patent or a set of designs. The service includes a necessary preliminary legal analysis regarding the status of the design model and its actual ownership.  According to the standards governing the sector as well as to professional practice, intangible assets such as trademarks, on-line platforms, software, patents, know-how, etc., in order to be eligible for financial evaluation, must be:

  • independently identifiable (so-called principle of identifiability);
  • subject to the control of the owner, enabling him to profit economically and to limit or prevent exploitation by third parties (so-called principle of control).

WHO REQUIRES THE DESIGN EVALUATION

The question of determining the economic value of a design arises in the following cases: 

  • transfer/disposal of title; 
  • patent licencing;
  • contribution to the capital of a company; 
  • liquidation of corporate assets;
  • extraordinary operations (acquisition, transfer of a company or branch, merger, demerger); 
  • tax benefits (revaluation, patent box);
  • participation in calls for tenders and competitions;
  • search for public and private financing;
  • quantification of damages suffered as a result of an infringement action.

In the case of a contribution to a company, the economic valuation of the design is compulsory pursuant to Article 2343 of the Italian Civil Code. The Italian Civil Code prescribes a certified appraisal report to guarantee the actual amount of share capital. Design evaluation is also strongly recommended whenever doubts arise regarding economic transactions involving the design. 

Please note, the legal valuation (STEP 1, see below) is often requested to our Firm by accountants who need to check the actual legal existence of the asset before proceeding with its evaluation.

SERVICE FEATURES

Our evaluation comprises two steps:

STEP 1. Legal evaluation (verification of juridical consistency): the Law Firm performs a specific due diligenceAn analysis is performed on the status of designs, including extension of protection, commercial exploitation, residual duration of the right. Through dedicated checklists and interviews, the Law Firm gathers all relevant documents and information. The outcome of the legal valuation consists of a comprehensive report (legal advice) that is an integral part of the subsequent appraisal report. 

Please note that this legal evaluation (STEP 1) can also be provided by our Law Firm independently from the appraisal report. We are often requested to carry out a legal evaluation by accountants who need to verify the consistency of intangible assets for their clients before proceeding with their financial evaluation.

STEP 2: Appraisal report (economic valuation): the economic value of design is estimated using methods based on profitability, costs and empirical data. The design value estimate is the result of applying several valuation methods. The professional chooses the methods that are most consistent with the company’s peculiarities, the current situation and the available data. The appraisal is usually carried out by accountants selected by Canella Camaiora Law Firm. The service referred to in Phase 1 is preliminary to the economic evaluation (Phase 2).

ADVANTAGES

The Canella Camaiora Law Firm is highly qualified in the management and protection of industrial and intellectual property rights. Among the Law Firm’s services, the design evaluation service is one of the most requested and appreciated. 

The legal valuation (verification of legal consistency, STEP 1) of the intangible can also be estimated and provided by the Canella Camaiora Law Firm independently from the appraisal report (STEP 2). The economic appraisal, if requested, is carried out by accountants – experts in intellectual property and selected by the Firm – who regularly collaborate with the Court of Milan.

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