Intangible Asset Valuation

Intellectual Property

valuation_ip

Read-onlyIdempotent

Values a specific patent, trademark, copyright, or trade secret by selecting the formula for risk-adjusted DCF, brand royalty, copyright income, or secrecy risk.

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; 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: 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.
`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.
`profit_margin`	No	Profit margin as a decimal (0.20 = 20%).
`remaining_life`	No	Remaining legal/economic life of the patent in years.
`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.

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

A4.9/5.0

Behavior5/5

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

Annotations already declare readOnly, idempotent, non-destructive, and closed-world behavior, and the description adds important operational traits beyond them. It states that computation is pure arithmetic with no I/O or external calls, results are rounded to two decimals, irrelevant method parameters are ignored, and missing required parameters or an unknown method produce an error rather than a value.

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?

The description is front-loaded with purpose and usage before diving into method-specific parameter mappings and behavioral notes. It is longer than average but mostly earns its length by encoding method dependencies and error behavior that are not available in the schema alone.

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 rich annotations and an output schema, the description supplies all critical context an agent needs: when to use it versus siblings, method-specific required parameters, ignored-parameter behavior, error conditions, and return-value precision.

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 method-level parameter semantics not captured by the field descriptions. It specifies exactly which parameters each method requires and which are optional, and clarifies that only method is required while other parameters are method-dependent and ignored if supplied for the wrong method.

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?

The description states a specific verb and resource: valuing a specific IP right across patent, trademark, copyright, and trade-secret methods. It distinguishes itself from siblings by explicitly routing technology/software/data/platform assets to valuation_technology and customer/workforce assets to valuation_customer and valuation_human_capital.

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?

It gives explicit when-to-use guidance and names the correct alternative tools for adjacent asset classes. The condition for selecting this tool is clear: use it for a specific IP right, not for technology, customer, or human-capital assets.

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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