How do I determine a reasonable price to sell the rights to my software?

Related Ads


I am a computer programmer and created software that has been very successful in my industry. I'm considering selling all the rights to my software.  What legal issues should I look into and how do I determine a reasonable price to sell the software?


Intellectual property is an intangible asset because it cannot be defined or specified by its physical parameters since it is created by the human intellect. Intellectual properties are classified into particular categories in which they have some similarities in terms of nature, feature, method of creation, and legal protection.

For purposes of intellectual property valuation, academics typically categorize intellectual property into two categories: creative and innovative.  Examples of creative include trademarks, copyrights, and computer software.  For innovative, some examples would be patents, industrial designs, and trade secrets. /p>

There are numerous intellectual property valuation methods, the most common of which include the cost approach, market approach, income approach, and direct approach.

The type of approach to use may depend on the category of your intellectual property and financial factors. In the United States, it is common practice to follow the The Uniform Standards of Professional Appraisal Practice (USPAP), which are the generally accepted standards for professional appraisal practice for all types of appraisals including intangibles such as intellectual property valuation.

Moving forward, please consult with a Technology Law Lawyer or Intellectual Property Lawyer to determine the proper steps to take in your case.

This article is provided for informational purposes only. If you need legal advice or representation,
click here to have an attorney review your case .