ABSTRACT
The previous chapter has highlighted the absence of appropriate valuation methods for securitization. Therefore, in this chapter the authors provide a detailed presentation of the different valuation methodologies that exist till date. At the initial step, the chapter reviews the guidelines relating to the patent valuation as provided by the International Accounting Standards (IAS), 38, on Intangible Assets. But our investigation has led us to the absence of any specific and applicable techniques for valuation of intangible assets. Subsequently the chapter explores in detail the past literature from various sources. Some of these are proposed by valuation experts or practitioners and some are developed by researchers and academicians. The valuation methods that have been proposed by valuation experts have been named Praxis Methods while the models developed by academicians are termed as Academician Methods. Along with the discovery and classification and grouping of the valuation methods, the chapter has also taken efforts to find out the benefits and limitations of each and every method. Thereafter the chapter tests the suitability of all these methods in the context of securitization where the chapter emphasizes the purpose-related feature of valuation and finds out the necessity of a valuation method to be suitably applied for valuing patents for the purpose of securitization.
