FTI Consulting provides economics and finance advice on intellectual property matters where thoughtful and tailored analysis is vital. Our work includes expert evidence for courts and tribunals, advice on tax and transfer pricing issues, IP valuation and the determination of royalty rates in commercial transactions, corporate restructuring, transfer pricing and public policy advice. Our team is comprised of economists, econometricians and accountants, each with practical experience of intellectual property matters. We provide clear and structured written and oral advice. In addition, we are experienced at applying quantitative techniques involving surveys and choice modelling.
FTI Consulting provides expert evidence on damages, accounts of profits, reasonable royalties (including in the context of collecting societies and FRAND rates for standard-essential patents) and IP valuation.
Our team has provided extensive written and oral testimony before domestic and international courts and tribunals. We provide associated commercial advice and assist in settlement negotiation. In addition, we work closely with clients, their legal advisers, witnesses of fact and experts from other technical disciplines to provide robust and coherent testimony.
Our experience includes:
Calculation of damages, account of profits and assessment of reasonable royalties
The assessment of FRAND terms for licensing standard-essential patents
References to the UK Copyright Tribunal
Resolution of intellectual property disputes through international arbitration, mediation and expert determination
Licensing disputes and royalty audits
Licences of right
Professional negligence claims relating to intellectual property rights or their valuation.
Members of our team have acted as independent experts, or been senior team members, in leading [UK] matters including:
Gerber Garment Technology v Lectra Systems [1995] RPC 383
AEI Diffusion Music Limited v PPL CT 36/96 and 37/96
Hoechst Celanese Corporation v BP Chemical Ltd & Anor [1997] EWHC 370 (Pat)
Jonathan Ball v Druces & Attlee [2004] EWHC 1402 (QB)
British Phonographic Industry Limited & Ors vs MCPS and PRS [2007] CT/84-90/05
Les Laboratoires Servier & Anor v Apotex Inc & Ors [2008] EWHC 2347 (Ch)
British Academy of Songwriters, Composers And Authors & Ors, R (On the Application Of) v Secretary of State for Business, Innovation And Skills [2015] EWHC 1723 (Admin)
FTI Consulting provides advice on IP value and appropriate royalty rates in the context of commercial transactions and corporate restructuring. We have the experience to gauge the appropriate valuation methods to deploy in specific contexts, both when market and financial information is plentiful and when it is scarce or hard to interpret.
Recognising that many commercial transactions occur in the context of a regulatory framework, or where there is the potential for dispute, we advise in situations such as:
Transactions – we assist in transactions involving specific intangible assets, portfolios of intellectual property rights or companies whose value depends on underlying intangible assets. We provide independent opinions in fundraising and due diligence processes
Licensing – we advise on royalty rates, licence structures and negotiating considerations, taking into account the rights and obligations of the parties to the licence
Security reviews, restructuring and insolvency processes where we advise on the potential recoverable values
Investment appraisals, such as valuation of new technologies and brand extensions
The exploitation of intellectual property rights, including transactions between related parties, is increasingly monitored by fiscal, accounting and competition regulators.
We advise on matters such as:
Fiscal valuations and transfer pricing of intangible assets, including under the UK legislation and OECD transfer pricing guidelines
Financial reporting for intangible assets under UK and International Financial Reporting Standards
Transfers between related parties, where a board or trustee requires independent advice, or an administrator is examining if intangible assets were transferred at undervalue
Public policy issues such as the regulation of consumer goods brands
FTI Consulting advises on the value of IP for the purposes for intra-group transfers of IP assets, setting intra-group royalty rates, or assessing transfer prices for goods and services that are heavily reliant on IP.
Our team of economists and tax specialists has extensive experience in all aspects of IP transfer pricing and tax valuations, from tax authority audits to comprehensive transfer pricing studies supporting complex transactions and advance pricing agreements.
FTI Consulting advises on public policy issues in relation to IP. In a rapidly changing world, governments, industries and civil societies face increasing challenges in ensuring that the international IP system continues to strike the right balance between encouraging innovation and creativity and producing social and economic benefits for all stakeholders.
Our professionals are experienced in working at the intersection of policy, law and regulation. We apply rigorous economics and finance frameworks to assess the social and economic implications of policy alternatives and assist our clients shape and inform the political and policy environment.
We provide up-to-the-minute intelligence and assessments of policy and political risk. Every political jurisdiction is unique, and our team acts as clients’ local guide, helping to engage the right policymakers with the right message at the right moment to protect a client’s IP value.
