Business Consulting

Quant Economics provides economic analysis for the licensing and valuation of intellectual property, including patents, trademarks, copyrights, and trade secrets. We assist companies in structuring and negotiating beneficial technology licenses. Our approach thoroughly examines the markets, businesses, and competitive factors that influence technology value, and incorporates these findings into an effectively structured license.

Typically, rules of thumb, such as 5% of sales, do not accurately reflect the specific technology, market, or parties involved in the licensing. Rather, a comprehensive license often addresses minimum fees, maximum fees, per unit fees, tiered payments, and the number of licensees, in an effort to reduce risks and appropriately share rewards. Additionally, effective licenses can leverage asymmetric information and employ non-monetary compensation for mutual gain.

Quant Economics employs time-tested and state-of-the-art methods for technology licensing. For example, Monte Carlo simulation is a statistical technique that can be used to evaluate alternative licensing structures and negotiation arrangements, including various forms of auctions. Nash bargaining methods can be used to quantify the economic viability of alternative technologies, which often impact technology value and licensing rates.