Evaluation of Trademark

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A registered trademark is not only an indispensable attribute of modern business, but also its business card, since it will attract additional cash flows and new customers. 

Any successful organization should strive to increase the estimated value of its trademarks and other means of identity. 

The assessment of a trademark establishes the value of the material equivalent of the exclusive or non-exclusive rights to it. As in the case of evaluating another intellectual property object, cost, comparative and profitable methods are used. If several methods are used in the assessment, this increases the degree of accuracy of such an assessment. 

An accurate estimate of the value of a trademark is necessary in situations such as: 

  • increasing the value of a business, for example, when selling it; 

  • disposal of rights to a trademark, for example, when transferring rights under an agreement: licenses, alienation of rights;

  • settlement of a conflict related, for example, to illegal use of a registered trademark by other legal entities. 

There are two main types of trademark value: market; investment. 

Depending on the type of value, an appropriate approach to assessment is chosen: income, costly, comparative.

What does a trademark evaluation give?

Evaluation of a trademark allows you to find out the real value of your business, since a trademark is a powerful intangible asset of any organization. For example, when selling your business, intangible assets can account for 60-70% of the value of the entire organization.

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