Interview with Xavier Mazabraud, valuation expert at LLR

Knowing the asset value of your intellectual property is essential when acquiring or selling a portfolio of patents or trademarks, making a contribution in kind, or determining the share of IP assets in the valuation of the company.

At LLR, we have developed a unique expertise in this highly specialized field, which requires considerable expertise and experience. We spoke with Xavier Mazabraud, an expert on the subject at LLR, to learn more about it.

Xavier, can you briefly describe your background in IP (*)?

I am a graduate engineer from Arts et Métiers, so I have a generalist nackgroung. I first worked in Research & Development in the energy sector for a large public group. I then moved into the construction and civil engineering industry before focusing on industrial property within consulting firms.

Very early on, I was confronted with my clients’ need to value their patents.

More specifically, how did you develop your expertise in the financial valuation of patents and trademarks?

I was fortunate to be introduced to IP by colleagues with unique expertise in the subject. They had developed some of the first capital-based valuation methods in the 1970s and early 1980s. This gave me the opportunity to test and develop theoretical approaches using real-world cases.

In addition, my experience as a patent engineer, my practical knowledge of my clients’ issues, and the cumulative experience gained from numerous evaluations — supported by suitable analytical tools —have all helped me build my expertise.

When we talk about IP asset valuation, what are we talking about?

It involves the financial and asset valuation of patents, trademarks, designs, or even software.

To perform such evaluations, we take into account the specific context (such as transfer of rights, licensing, capital contribution, etc.), the legal status of the rights, and associated legal, technological, or financial risks. We then apply valuation methods that allow us to best estimate the value of an IP portfolio.

What are the specific features of patent or trademark valuation?

For patents, we first consider the expenses incurred in order to create and maintain the portfolio of rights and treat them as investments. We also analyze the commercial value of the portfolio based on expected revenue. Other parameters are taken into account as well, such as market type, scope of protection, any associated know-how, and certain technical–legal valuation factors.

For trademarks, we typically consider the scope of protection, reputation, importance of exploitation, existence of disputes, and the market in question.

How are the results of your analyses used?

They are generally provided to statutory auditors in charge of evaluating in-kind contributions, who often use them as they are as a capital-based value to justify such contributions.

It is also worth noting that the asset value obtained can serve as a capital and/or tax value when IP valuation is taken into account in the tax framework applied by certain countries.

Could you share a case that particularly stood out to you?

I can mention two cases from very different sectors.

The first goes back about fifteen years and concerns a French company specializing in digital compression, similar to the JPEG or MP4 standard. The company sold its software for a few cents per device or application. A Korean company interested in their technology came to Paris for a demonstration. I was there to lend some weight to the patent arguments, especially since I had estimated their portfolio to be worth between €600 million and €1.4 billion (2025 value). A review by the French National Financial Prosecutor’s Office later validated the methodology used to reach that result.

The second, more recent case involved a locator beacon for detecting victims, where the related IP was valued at over one million euros.

Have you noticed any changes in how or why companies seek IP asset valuations?

I am noticing that I am being asked to carry out more and more studies. Among them, there are more and more start-ups, whose patents constitute their main asset, and which are interested in these valuations.

(*) IP: intellectual property