Valuation, Commodification and Commercialization of Intellectual Property in Enhancing the Economy in the 4.0 Industry in Indonesia

Abstract

Intellectual Property has been recognized as a very valuable intangible asset for companies. It considered as value to the company, especially for the micro, small, medium enterprises, and start-up businesses. This paper is focused on valuation, commodification, and commercialization of intellectual property rights in the 4.0 industry. The methods that shall be used to conduct this research are descriptive-analytical and comparative methods, underlies by the normative and sociological juridical approaches. Descriptive analytical method is a systematic method of research using description or presentation of existing data. This article elaborates that within the 4.0 industry, Intellectual Property is becoming more and more varied, specifically the ones produced by universities and start-up businesses. This article concludes that the valuation of intellectual property may be performed through 3 methods, namely the market approach, the cost approach and the income approach. From these three valuations, the most suitable one for intellectual property, is the income approach, which calculate  based on cash flows and income from intangible assets. In order to increase the insufficiency of value in certain intellectual property, one can perform a commodification, beside performing a valuation itself. Digital media might help this commodification to increase the value of an intellectual property. Moreover, the most important value of intellectual property lies in its commercialization, an intellectual property must have an economic value and be useful in the trading field in order to produce benefits for its owner.