Tutorial: How to Value Software in a Business, and Where Might the Value Go?
- 1.5k Downloads
This tutorial consists of two parts. In the first part we motivate why businesses should determine the value of the Intellectual Property (IP) inherent in software and present a method to determine that value in a simple business model: Enterprise software for sale. In the second part we consider the same software as marketed in a service model. A service model imposes a maintenance obligation. Maintenance is often outsourced so we also consider the risk to IP, especially when work is performed offshore. Finally we present the consequences to the original creators when IP is segregated into a tax haven.