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The Valuation of Intellectual Property in Offshoring Decisions

Posted: 19 Feb 2009 Last revised: 14 May 2014

Gio Wiederhold

Stanford University

Amar Gupta

Massachusetts Institute of Technology (MIT)

David Branson Smith

McGuire Center for Entrepreneurship, Eller College of Management, University of Arizona

S.G. Tessler

affiliation not provided to SSRN

Date Written: February 19, 2009

Abstract

Businesses engaging in outsourcing of professional service activities to organizations in foreign countries have focused primarily on the issues of cost and the number of jobs affected. However, significant transfers of intangibles occur in many service-based off shoring arrangements as well. Some of these intangibles are considered to be intellectual property (IP). The transfer of intellectual property that accompanies such off shoring arrangements can have significant value, making it important to understand risks of loss, obligations of taxation, and contributions to the profit-making potential of an enterprise. Software is an important and often under-valued component of such transfers of intellectual property.

This overview paper offers a interdisciplinary examination of intellectual property valuation issues and a business perspective for considering software valuation in the context of off shoring decisions and practices.

Keywords: Intellectual Property, Intangibles, Software, Valuation, Outsourcing, Offshore, Offshoring, Risk, Taxation, Tax haven

JEL Classification: G12, G15, G31, F20

Suggested Citation

Wiederhold, Gio and Gupta, Amar and Smith, David Branson and Tessler, S.G., The Valuation of Intellectual Property in Offshoring Decisions (February 19, 2009). Available at SSRN: https://ssrn.com/abstract=1346447

Gio Wiederhold (Contact Author)

Stanford University ( email )

Stanford, CA 94305
United States

Amar Gupta

Massachusetts Institute of Technology (MIT) ( email )

77 Massachusetts Avenue
Building 32-256
Cambridge, MA 02139
United States
617-253-0418 (Phone)

David Branson Smith

McGuire Center for Entrepreneurship, Eller College of Management, University of Arizona ( email )

Tucson, AZ 85721
United States

HOME PAGE: http://next.eller.arizona.edu/people/

S.G. Tessler

affiliation not provided to SSRN ( email )

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