Intellectual Property Basics Attorney in Minneapolis, Minnesota

Calculating New Investments

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A new investment is really a comparison of capital investment in new products versus a capital investment in keeping the lights on in existing product lines. So this is largely, again, a qualitative measure that is more easily calculated for an internal client than it is for an estimation of a benchmark client. What we tend to do, though, is try to find a level of investment for new products – new products being defined as products in the market three years or less – and then what is the capital investment to keep other things going. So if you’ve been making the same widget year in and year out, there’s – you know, then you have a certain amount of investment just to keep that widget line going. That’s partly the quotient of that. So this is more of a individual estimate rather than a marketplace estimate.

Minneapolis patent attorney Mark Stignani explains how an attorney can calculate new investment when analyzing IP value.

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