As the assets of a typical company have become increasingly comprised of intangible assets and intellectual property, the importance of understanding the intellectual property owned by a company has increased. Intellectual property represents intangible assets that consist of human knowledge and ideas.
Of the common types of intellectual property (i.e., patents, copyrights, trade names/trademarks, and trade secrets), trade secrets have perhaps received the least attention from the valuation community. However, as secrets have become more difficult to maintain due to technological changes, the importance of understanding valuation and damages issues related to trade secrets has increased.
