In defending your trademark or preparing to sell, transfer or license it, you'll need to know just how much it's worth. That may prove tougher than it sounds.
The value of a trademark generally is based on the trademark's earning power and on the goodwill associated with it, an intangible factor such as brand recognition. To that end, there are three primary valuation approaches used:
- Income approach: Assigns a value to a trademark based on past and expected future profits associated with the mark.
- Market approach: Assigns a value based on comparisons of transactions (such as royalty rates) involving similar assets.
- Cost approach: Assigns a value based on the cost of creating a trademark and the cost of replacing the existing trademark with a trademark with the same market power.
But in the case of a new trademark for a company or brand that has yet to amass an income, other factors come into play. In this case, a study of the industry in which the trademark will be used or the products marketed; market surveys that detail probable sale prices and expected profits; and opinions of industry experts all may influence a valuation.
Your best bet for determining the true value of your trademark is to contact an experienced trademark attorney. Call Orlando's Daniel Law Offices at 866-37PATENTS.