Financial Luminaries Establish The Patent & License Exchange's TRRU Metrics Standards Board.Business Editors PASADENA, Calif.--(BUSINESS WIRE)--May 9, 2001 Leading Authorities on Valuation, Finance and Accounting Methods Help Make pl-x's TRRU(R) Metrics a Standard Tool for Valuing Intellectual Property The Patent & License Exchange (www.pl-x.com), the provider of financially oriented intellectual property (IP) management, valuation and marketing products, today announced the formation of the TRRU Metrics Standards Board. The board, made up of nationally recognized IP valuation and finance authorities, is establishing options-pricing theory and the use of live-market data as a standard technique for calculating the value of an IP asset. Joining the board as founding members are Anthony Aaron, the partner in charge of Ernst & Young's Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. and San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden valuations practices; Dr. Martha Amran, a leading expert and author on real options; Bryan Benoit, partner in the Financial Advisory Services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal practice of PricewaterhouseCoopers; Dr. Richard Stern Richard Stern, username rickyste on YouTube, is a YouTube comedian and critic. Under the video persona "Lazydork", Stern keeps his face characteristically unshaven and sported glasses, pajamas and a blue bathrobe. , lecturer at UCLA's Anderson School of Business; and Dr. Glenn Yago, director of capital studies at the Milken Institute. "These financial authorities are helping establish TRRU Metrics as an industry standard for valuing intellectual property and supporting the emerging needs of businesses looking to manage, market and monetize their intangible assets," said Nir Kossovsky, chief executive officer and chairman of pl-x. "Managing intellectual property is a business, and executives need a standard valuation method to support their daily decision-making." TRRU (Technology Risk/Reward Unit) Metrics enables users to calculate an instant, market-driven indication of intellectual property value. The product, available exclusively through The Patent & License Exchange and its affiliated network of Certified TRRU Analysts (CTAs), exploits the fact that a patent is a "call option" on technology. TRRU Metrics, therefore, applies the same Nobel Prize-winning equation (The Black-Scholes Formula) used in determining the value of other financial "call options," along with continuously updated financial data from more than 1,500 micro-cap companies, to create an IP valuation system that provides users with a way of calculating the value for their intellectual property assets. TRRU Metrics joins several existing IP valuation methods including Discounted Cash Flows (DCF DCF See: Discounted Cash Flows ), DCF with Monte Carlo stochastic modifiers, lost royalties, the 25% rule, and the method of comparables. Unlike these competing methods, TRRU Metrics' market-driven process is uniquely suited for IP valuation tasks when the prospect of commercializing of the technology is still several years away, the financial markets are abnormally volatile, and there is significant uncertainty about the future of the technology, the markets and resulting cash flows. By using TRRU Metrics, companies, law firms, consultancies and non-profits can quickly and cost-effectively calculate the value of their IP when negotiating technology transfer agreements, during mergers and acquisitions, when estimating damages for IP-based litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , and when valuing IP for tax donations. TRRU Metrics also allows companies to prioritize the patents in their intellectual property portfolios and determine which technologies they should commercialize, license, monetize or let expire. The members of the TRRU Metrics Standards Board include: Anthony Aaron: Aaron is the partner in charge of Ernst & Young's Los Angeles and San Francisco valuation practices, a part of E&Y's Corporate Finance group. He also coordinates risk management and quality assurance for Ernst & Young's national valuation practice. He is a Chartered Financial Analyst Chartered Financial Analyst (CFA) An experienced financial analyst who has passed examinations in economics, financial accounting, portfolio management, security analysis, and standards of conduct given by the Institute of Chartered Financial Analysts. (CFA (Computer Fraud and Abuse Act of 1986) Signed into law in 1986, the CFA was a significant step forward in criminalizing unauthorized access to computer systems and networks. The Act applies to "federal interest computers" that include any system used by the U.S. ) and a senior member of the American Society of Appraisers, tested and accredited accredited recognition by an appropriate authority that the performance of a particular institution has satisfied a prestated set of criteria. accredited herds cattle herds which have achieved a low level of reactors to, e.g. in business valuation. Aaron specializes in the valuation of capital stock and related securities. Aaron's areas of expertise include valuation of intangible assets, common stock, preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , minority and majority interests, privately held interests and unusual securities. Aaron has also performed and directed several hundred valuation studies of intangible assets for purchase price allocation prepared for both tax and financial accounting purposes. Recently, Aaron has served as a member of the Appraisal and Valuation Task Force of the Independence Standards Board (ISB), as well as the In-process Research and Development Best Practices Task Force of the AICPA/SEC Regulations Committee. Aaron has a master's degree in business administration from UCLA's Anderson School of Business and a bachelor of science Noun 1. Bachelor of Science - a bachelor's degree in science BS, SB bachelor's degree, baccalaureate - an academic degree conferred on someone who has successfully completed undergraduate studies in business administration from the University of Southern California The U.S. News & World Report ranked USC 27th among all universities in the United States in its 2008 ranking of "America's Best Colleges", also designating it as one of the "most selective universities" for admitting 8,634 of the almost 34,000 who applied for freshman admission . "TRRU Metrics provides Ernst & Young with a powerful tool for helping our clients manage and make money from their intellectual property," said Aaron. Dr. Martha Amram: Amram is an independent author, scholar and consultant. She was formerly the managing director of the Real Options Center for Excellence at Navigant Consulting Inc. in Menlo Park, Calif., and a founder of Glaze Creek Partners. Amram has led a number of teams that have developed tailored applications of the real options approach for valuation, decision making and corporate strategy, including: pharmaceuticals, oil exploration, electric power generation and semiconductor design. Amram holds a Ph.D. in applied economics from the Massachusetts Institute of Technology Massachusetts Institute of Technology, at Cambridge; coeducational; chartered 1861, opened 1865 in Boston, moved 1916. It has long been recognized as an outstanding technological institute and its Sloan School of Management has notable programs in business, , and a bachelor's degree in mathematics and economics with honors from the University of Washington. She was previously a faculty member at Boston University's School of Management, and vice president, Analysis Group/Economics, and is the lead author of "Real Options," published by Harvard Business School Harvard Business School, officially named the Harvard Business School: George F. Baker Foundation, and also known as HBS, is one of the graduate schools of Harvard University. Press. "The financial markets are adept at calculating the value of an investment, exactly the same challenge faced by business strategists," said Amram. "TRRU Metrics applies the discipline of the world's financial markets to valuing intellectual property, creating a discipline for licensing and investment decisions." Bryan Benoit: Benoit is a partner in the Financial Advisory Services ("FAS") practice of PricewaterhouseCoopers LLP LLP - Lower Layer Protocol in Houston. He is a certified public accountant Certified Public Accountant (CPA) An accountant who has met certain standards, including experience, age, and licensing, and passed exams in a particular state. (CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. ), and his experience includes business valuation, intellectual property valuation, development of intellectual property joint venture and licensing strategies, intellectual property transactions, royalty audits and expert witness testimony. He is the co-chairman of the company's Intellectual Property Leadership Forum and the partner responsible for the firm's intellectual property e-business, The Intellectual Property Exchange(SM) ("IPEX IPEX Italian Power Exchange IPEX Immunodysregulation, Polyendocrinopathy, Enteropathy, X Linked (Syndrome) IPEX Input Parameter Extra (Alcatel) "). Benoit received a bachelor of science degree in computer science from the University of Southwestern Louisiana and a master of business administration degree from Louisiana State University Louisiana State University and Agricultural and Mechanical College, generally known as Louisiana State University or LSU, is a public, coeducational university located in Baton Rouge, Louisiana and the main campus of the Louisiana State University System. . "Determining the value of an intellectual asset can be a challenging and time-consuming process for a company. By using TRRU Metrics, PWC can provide clients with a new tool for discovering the market value of their technologies," said Benoit. Dr. Richard Stern: Stern is a lecturer of decision sciences at the Anderson School of Business, UCLA UCLA University of California at Los Angeles UCLA University Center for Learning Assistance (Illinois State University) UCLA University of Carrollton, TX and Lower Addison, TX . Stern received his undergraduate degrees in physics and mathematics from the Massachusetts Institute of Technology, as well as a Ph.D. in physics from the University of Chicago. He subsequently was engaged in government-sponsored defense work in the areas of strategic weaponry, anti-submarine warfare and analysis of intelligence data. Since 1993, his work has been in the area of mathematical finance, where he serves as the director of quantitative modeling for a major financial services company. His work is principally concerned with devising quantitative models and techniques to manage interest-rate risk, as well as the evaluation of credit risk. "pl-x's realization that a patent is actually a call option on technology has made it possible to utilize the same proven formula for pricing options, Black-Scholes, when valuing this form of intellectual property," said Stern. "Because a patent and call option behave so similarly in terms of their payoff schematics, TRRU Metrics is the logical mechanism for determining the fair market value of an intellectual property assert." Dr. Glenn Yago: Yago is the director of capital studies at the Milken Institute. Yago specializes in financial innovations, financial institutions and capital markets. Before coming to the Institute, Yago was a faculty member of the Ph.D. program in economics at the City University of New York The City University of New York (CUNY; acronym: IPA pronunciation: [kjuni]), is the public university system of New York City. Graduate Center and a senior research associate at the Center for the Study of Business Government at Baruch College-City University of New York There is no institution of higher education in the State of New York or the United States of America that bears the name University of New York. However, in confusion, it is possible that such a reference may regard the following: He has previously served as faculty fellow at the Rockefeller Institute of Government The Nelson A. Rockefeller Institute of Government is a public policy research institute, or think tank, that conducts studies and other projects relating to state and local government in the United States, American federalism, public management and finance, the implementation of , director of the Economic Research Bureau at the State University of New York (body) State University of New York - (SUNY) The public university system of New York State, USA, with campuses throughout the state. at Stony Brook, and associate professor of management at Stony Brook's Harriman School for Management and Policy. Yago received his Ph.D. from the University of Wisconsin, Madison in 1980. "By using the Black-Scholes Options Pricing Model as the engine of their TRRU Metrics system, pl-x is adopting a powerful and well established financial formula and creating a new standard for valuing intellectual property," said Yago. About The Patent & License Exchange Inc. The Patent & License Exchange Inc. (www.pl-x.com) provides financially oriented intellectual property (IP) management, valuation, marketing and monetization products and services. These tools are designed to reduce business costs, improve cycle time and help companies discover new sources of revenue from their intangibles. pl-x offers enterprise-level and individual licenses to five platform technologies: an options theory-based IP valuation system (TRRU Metrics); an IP catalog searchable by quantitative attributes; a pricing and negotiation system for transacting IP; an IP asset management system; and a suite of transaction assurance products, including automatic patent validity insurance, global funds management and physical asset escrow. pl-x also publishes and distributes IP valuation data and operates a global exchange. |
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