Uniloc: The Federal Circuit Declares an End to the 25% Rule
of Thumb, from the Celesq[R]-West IP Master Series
The 25% rule
allows for the normal price fluctuation that occurs in most issues.
Chapters cover IP and corporate value, licensing IP assets, use of the 25% rule
in valuing IP, royalty rate guidelines, comparable licenses, royalty statistics, profit differentials and royalty rates, court-awarded royalty rates, comparisons of litigated and non-litigated licenses, and monitoring license agreements and financial compliance.
The section on licensing covers intellectual property exploitation strategies, economic contributions of intellectual property, global exploitation potential, use of the 25% rule
in valuing intellectual property, licensing economics and royalty rights, licensing negotiations and agreements, internet asset licensing, and university technology transfer.
However most companies have already abandoned the 25% rule
and are listing their ingredients in full.
In addition to the 25% rule
, another test applies: The initial amount of life insurance protection cannot exceed 100 times the monthly annuity payable upon retirement.
Case studies will be presented for valuing early-stage technologies using the CAV method as well as other valuation methods such as the cost method, replacement method, market method, income method, 25% rule
, industry standard royalty rate method, the Monte Carlo method, and real options method.
Unfortunately, this 25% rule
can make contingent reversions and powers of appointment prohibitive when a grantor reaches his mid-60s, just when such instruments are most needed.
Fitch's rating anticipates management's capability of continued compliance with the Centers for Medicare and Medicaid Services (CMS) 75% rule for Inpatient Rehabilitation Facilities (IRF) and 25% rule
for LTCH's as certain management initiatives are expected to mitigate the full impact of these regulations.
17 per diluted share after tax, to write down the value of an intangible asset related to the Louisiana Specialty Hospital's statutory exemption from the 25% Rule
for long-term acute care hospitals (LTACHs).
The release also provides for extending the 25% rule
to all LTACHs, including those LTACHs that have previously operated under a statutory exemption.
Diaz also commented on CMS's decision to extend the LTAC 25% rule
to freestanding LTACs.