Study On Discount Rate For Intellectual Property Evaluation

At present, intellectual property has become the production elements of the developed economic globalization, and it provides the foundation for competitive advantage of technology innovation. China has recognized that intellectual property has become a key factor in the process of national modernization, and the "Intellectual Property Strategy" has been brought into effect. It makes strict demands on intellectual property evaluation because of such situation. As all know, income approach is the most popular method in intellectual property evaluation. Income method can not be effectively used, only if the discount rate has been reasonably determined. Thus, determining the discount rate of income approach has a significant effect to intellectual property assessment. There is much improvement about how to reasonably use the discount rate of income approach.Firstly, according to literature at home and abroad, methods are summarized of the intellectual property assessment and how to determine the discount rate, meanwhile a deep discussion is done about the related theory of discount rate.Secondly, the discount rate is analyzed from the point of its nature, impact factors and principles. Besides, to prove the importance of the discount rate, traditional model and improved model have been carefully analyzed.Thirdly, after summing up some models, time series forecasting method for income approach is proposed. At last, after the analysis of an actual case, the reliability and operability of time series forecasting method is proved.Research shows that the economic characteristics of intellectual property have a significant impact on the discount rate, and how to determine the discount rate has the most significant influence in using the income method. Meanwhile, the discount rate calculated by time series forecasting method is in line with the requirements of intellectual property evaluation and the case results show that its forecasting is more reliable than the traditional method of DCF(Discounted Cash Flow ).