Intangible Asset Valuation

Transfer Pricing & Litigation

valuation_compliance

Read-onlyIdempotent

Calculates arm's-length ranges for intercompany intangible transfer pricing and patent infringement damages with prejudgment interest.

Instructions

Transfer pricing and litigation: the Comparable Uncontrolled Price arm's-length range and patent infringement damages with pre-judgment interest. Method selects the formula. Use for OECD transfer-pricing pricing of intercompany intangibles and for patent infringement damages awards. For royalty-rate benchmarking to set a rate use valuation_royalty_analysis; for the substantive asset valuation use valuation_ip or valuation_income_methods. Per method: cup_transfer_price needs controlled_price + uncontrolled_prices; patent_infringement_damages needs lost_profits_or_royalty + infringement_period + discount_rate + prejudgment_interest_rate. uncontrolled_prices must contain at least one comparable price for the arm's-length range. Only method is required; other parameters are method-dependent, so supply those named for the selected method and omit the rest (documented defaults apply where defined). Pure arithmetic: no I/O and no external calls, and numeric results are returned rounded to 2 decimals. Parameters belonging to other methods of this tool are accepted and ignored. Supplying an unknown method, or leaving unset a parameter that the chosen method requires, returns an error instead of a value.

Input Schema

TableJSON Schema

Name	Required	Description
`method`	Yes	Formula to apply. Options: cup_transfer_price = Arm's-length range from comparable uncontrolled prices.; patent_infringement_damages = Lost profits or reasonable royalty plus prejudgment interest.
`discount_rate`	No	Per-period discount rate as a decimal (0.10 = 10%).
`controlled_price`	No	Intercompany (controlled) price, in currency units.
`infringement_period`	No	Infringement period in years.
`uncontrolled_prices`	No	Comparable uncontrolled prices, in currency units.
`lost_profits_or_royalty`	No	Annual lost profits or reasonable royalty, in currency units.
`prejudgment_interest_rate`	No	Pre-judgment interest rate as a decimal.

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).
`formula_reference`	No	Mathematical formula or reference applied.

Schema Changelog

Changes observed during successful MCP inspections.

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

A5/5.0

Behavior5/5

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

Annotations already declare readOnly/idempotent/non-destructive, and the description adds substantial non-derivable behavior: pure arithmetic with no I/O or external calls, results rounded to 2 decimals, parameters from other methods silently accepted and ignored, and errors returned for unknown methods or missing method-required parameters.

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

Conciseness5/5

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

Dense but front-loaded: purpose first, then routing alternatives, then per-method parameter requirements, then behavioral guarantees. Every sentence carries distinct information with no filler.

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?

With an output schema present, return values need not be explained, yet the description still notes 2-decimal rounding. Combined with method routing, conditional parameter requirements, error behavior and purity guarantees, an agent has everything needed to invoke it correctly.

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

Parameters5/5

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

Although schema coverage is 100%, the description adds genuinely non-derivable semantics: the exact parameter set required per method, that uncontrolled_prices must contain at least one comparable, and that only 'method' is strictly required with the rest method-dependent and defaulted. This is more than the schema conveys.

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 domain (transfer pricing and patent infringement damages), names the two concrete methods (CUP arm's-length range, patent damages with pre-judgment interest), and explicitly distinguishes itself from sibling tools like valuation_royalty_analysis, valuation_ip and valuation_income_methods. An agent can identify the tool's scope without opening the schema.

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?

Provides explicit when-to-use conditions (OECD transfer-pricing of intercompany intangibles; patent infringement damages awards) and names the alternative tools for adjacent tasks (royalty-rate benchmarking, substantive asset valuation). It routes the agent both toward and away from this tool.

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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