A trademark is a distinctive sign, a name, an expression or a logo which enables the customer to recognize the products or services of a company from its competitors. It is an intangible asset like a patent, a software or a know-how.
A trademark which is registered and extended abroad increases the value of the owner company and is a source of income. It enhances the credibility of the company towards its partners and public and private financial organizations.
Why is it necessary to file its trademark?
Not protecting its trademark is a mistake!
A non-registered trademark can be used by a competitor who may file it, exploit it and prevent any other third party from using it, even its creator. Moreover, a trademark that is not registered is of no commercial value. It could not be made profitable through a sale or a licensing agreement, for instance.
Finally, contrary to common beliefs, the cost for filing a trademark with the help from an industrial property attorney is modest, including for start-ups.
Why should you valuate your trademark?
Several reasons to do a financial valuation of a trademark:
- To prepare a transaction (sale, acquisition, joint-venture, etc.);
- Generate income through license or franchise agreements;
- Assess the amount of damages in case of non-authorized use of the trademark;
- Increase the value of the company;
- Contribute it to the capital of a company to increase its equity.
What are the evaluation criteria of a trademark?
In order to estimate the value of a trademark, Brandon Valorisation analyzes various parameters such as:
- the legal aspects (seniority, protection, etc.) in partnership with Brandon IP
- its market (countries, size, etc.)
- an estimate of revenues related to its exploitation
- its environment (reputation, impact, communication, etc.).
These data are taken into account and processed using our proprietary method ValoFin and enable us to give the value of the trademark.
At the end of the mission, a report including our conclusions, with figures and our possible recommendations, is presented to the company’s managers during a dedicated meeting. This study can be used in future negotiations.
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