Intangible Asset Valuation

Intellectual Property

valuation_ip

Read-onlyIdempotent

Value a specific IP right—patent, trademark, copyright, or trade secret—using risk-adjusted methods. Select the formula; supply its required inputs.

Instructions

Intellectual property: risk-adjusted patent value, trademark/brand value, copyright income value, and trade-secret value under secrecy risk. Method selects the formula. Use to value a specific IP right; patent weights projected cash flows by probability of success, trademark uses brand strength to set the royalty. For technology, software, data, and platform assets use valuation_technology; for customer and workforce assets use valuation_customer and valuation_human_capital. Per method: patent needs remaining_life + cash_flow_projections + probability_of_success + discount_rate (optional: comparable_license_rates); trademark needs revenue + profit_margin + brand_strength_index + discount_rate + useful_life (optional: brand_method); copyright needs projected_revenue + useful_life + discount_rate + royalty_rate; trade_secret needs development_cost + economic_life + competitive_advantage_period + discount_rate + secrecy_probability. cash_flow_projections for patent run over remaining_life. Only method is required; all other parameters are method-dependent — supply those the selected method names and omit the rest (defaults apply where defined). Rates and premiums are decimals (0.10 = 10%). Pure arithmetic: no I/O and no external calls, rounded to 2 decimals; parameters belonging to other methods are accepted and ignored. An unknown method, or a missing method-required parameter, returns an error instead of a value.

Input Schema

TableJSON Schema

Name	Required	Description
`method`	Yes	Formula to apply. Options: patent = Risk-adjusted DCF over the patent's remaining life.; trademark = Brand value by relief-from-royalty or excess earnings.; copyright = PV of expected copyright royalty income.; trade_secret = Value under secrecy risk over the economic life.
`revenue`	No	Annual revenue attributable to the asset, in currency units.
`useful_life`	No	Useful life in years n (integer ≥ 1).
`brand_method`	No	Trademark method: relief_from_royalty adjusts the royalty rate by brand strength; excess_earnings capitalizes excess earnings.
`royalty_rate`	No	Royalty rate as a decimal (0.05 = 5% of revenue).
`discount_rate`	No	Per-period discount rate as a decimal (0.10 = 10%).
`economic_life`	No	Economic life in years (≥ 1).
`profit_margin`	No	Profit margin as a decimal (0.20 = 20%).
`remaining_life`	No	Remaining legal/economic life of the patent in years (≥ 0).
`development_cost`	No	Development or acquisition cost, in currency units.
`projected_revenue`	No	Projected annual revenue subject to the copyright royalty, in currency units.
`secrecy_probability`	No	Probability the trade secret remains secret, in [0,1].
`brand_strength_index`	No	Brand strength index on a 0-100 scale (75 = strong).
`cash_flow_projections`	No	Projected after-tax cash flows per period t=1..n, in currency units.
`probability_of_success`	No	Probability of technical and commercial success, in [0,1].
`comparable_license_rates`	No	Comparable license royalty rates as decimals.
`competitive_advantage_period`	No	Years the competitive advantage is expected to persist (≥ 0).

Output Schema

TableJSON Schema

Name	Required	Description
`error`	No	Error message when the call fails.
`steps`	No	Intermediate calculation steps for traceability (one string per step).
`value`	Yes	Computed valuation, rate, or metric.
`method`	No	Formula / method name that produced the result.
`assumptions`	No	Modelling assumptions applied (list of strings or key/value object).
`defaults_applied`	No	Optional parameters that were not supplied, so their documented defaults were used.
`formula_reference`	No	Mathematical formula or reference applied.

Schema Changelog

Changes observed during successful MCP inspections.

Changed1 schema field changedv2.1.1Oct 2, 2026

addedOutput schema / properties / defaults_applied

Added value: +{
+  "description": "Optional parameters that were not supplied, so their documented defaults were used.",
+  "items": {
+    "type": "string"
+  },
+  "type": "array"
+}

Changed4 schema fields changedv2.0.1Oct 1, 2026

changedInput schema / properties / competitive_advantage_period / description

Previous value: -"Years the competitive advantage is expected to persist."New value: +"Years the competitive advantage is expected to persist (≥ 0)."

changedInput schema / properties / economic_life / description

Previous value: -"Economic life in years."New value: +"Economic life in years (≥ 1)."

changedInput schema / properties / remaining_life / description

Previous value: -"Remaining legal/economic life of the patent in years."New value: +"Remaining legal/economic life of the patent in years (≥ 0)."

changedInput schema / properties / useful_life / description

Previous value: -"Useful life in years n."New value: +"Useful life in years n (integer ≥ 1)."

Changed2 schema fields changedv0.1.4Sep 30, 2026

changedOutput schema / properties / steps / description

Previous value: -"Intermediate calculation steps for traceability."New value: +"Intermediate calculation steps for traceability (one string per step)."

removedOutput schema / properties / steps / items / type
```
Removed value: -"object"
```

First observedv0.1.0Sep 30, 2026

TDQS

A4.6/5.0

Behavior4/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Annotations already declare read-only/idempotent/no-open-world behavior, but the description adds real context beyond them: pure arithmetic with no I/O or external calls, rounding to 2 decimals, extra method-foreign parameters accepted and ignored, and an error returned for unknown methods or missing required params. It stops short of describing the returned structure, though an output schema exists.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness4/5

Is the description appropriately sized, front-loaded, and free of redundancy?

Purpose and sibling routing are front-loaded, and the per-method parameter lists are dense but useful. It is fairly long and re-states some schema facts (decimal convention, field names), which costs a little, but no sentence is purely wasteful.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness5/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

For a 17-parameter tool with only one required field, the description supplies the missing method-parameter dependency map, error behavior, and unit conventions, and an output schema exists so return values need not be explained. An agent has everything required to call it correctly.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters4/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema coverage is 100%, so the per-parameter descriptions carry the baseline. The description's added value is the method→parameter mapping (which params each of patent/trademark/copyright/trade_secret requires and which are optional), a cross-parameter dependency the schema does not encode. It partially repeats schema content ('rates... are decimals', field names), so it is not a full 5.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

States a specific verb and resource ('Use to value a specific IP right') and enumerates the four value types it computes (patent, trademark, copyright, trade-secret). It explicitly names the siblings it is not for (valuation_technology, valuation_customer, valuation_human_capital), so an agent can route without opening schemas.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines5/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

Gives explicit when-to-use ('value a specific IP right') and names the alternative tools plus the asset classes that select them (technology/software/data → valuation_technology; customer/workforce → valuation_customer / valuation_human_capital). Nothing is left to inference.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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