Intensity performed an economic analysis of addressable market size and growth, usage rates, royalty rates, potential infringing competitors, enforceability, and technology relevance over time, to determine the fair market value of cloud technology patents.
Intensity was engaged by a global technology company that had acquired several families of patents relating to a cloud technology service delivery platform. In calculating fair market value of these patents, Intensity used the income approach, discounted cash flows, modeled revenue projections, and analyzed various internal and external market data. These calculations included patents that were in use, expected to become in use, and those of value but with no known plan for use.
Intensity’s calculations were used by the company’s management team to assist in forward looking business decisions related to the acquired technology, future use of patents, and evaluating the potential risks and rewards for pursuing enforcement actions.