Context
A major ASX-listed resources company was negotiating a licence for its IP relating to a novel carbon capture technology. Commercial terms were partly agreed, but the parties had not settled a royalty rate, and the licensee had proposed a rate without a clear valuation basis.
What we did
- Assessed the strength and defensibility of the IP using the SnapShot Score framework
- Benchmarked royalty rates for comparable technologies and licensing structures
- Analysed the IP’s contribution to the licensee’s projected earnings
Impact
Armed with a grounded royalty range, the client negotiated a rate about 25% higher than first proposed.