WHAT HAS VALUE?
CONSOR specializes in the valuation of intangible assets and intellectual properties. However, many times companies are unsure about what intangible assets in their portfolio have “value”? A starting point is defining what are intangible assets and what are intellectual properties.
One key difference is that an intellectual property has been granted specific legal protection and recognition under the IP laws of the United States. While many other intangible assets are recognized under contract law and general commercial law, only a small group of intangible assets are granted legal protection as IP – trademarks and service marks, patents, trade secrets, copyrights, and other rights such as domain names.
Even within the definitions of intellectual property, much is changing, and changing rapidly. Intellectual properties such as patents, trademarks, or copyrights are typically tied to other intangible assets. When CONSOR values these assets for clients, we regularly assemble and bundle groups of intangible assets around their core IP.
CONSOR believes that IP travels with intangible assets. For instance, a trademark will travel in tandem with associated assets such as logo designs, corporate colors, sub-brands, etc. Since we tend to bundle them together, the terms “intangible assets” and “intellectual property” are often used interchangeably. However, the term “intangible assets” should be universally understood to include all traditional types of intellectual property. Below is a partial listing of some of the intangible asset and intellectual property bundles that we often value. The following list is not intended to be all encompassing – the world of IP is constantly evolving and expanding as is the range of intangible asset/IP bundles.
Partial List of Intangible Assets and Intellectual Property Bundles
1. Marketing-Related
• Trademarks and service marks
• Trade names
• Brand names
• Logotypes
• Colors
2. Technology-Related
• Design patents
• Process patents
• Patent applications
• Business method patents
• Technical documentation (e.g. laboratory notebooks, technical know-how)
3. Artistic-Related
• Literary works and copyrights
• Musical compositions
• Photography
• Maps
• Engravings
4. Data Process-Related
• Platform software
• Software copyrights
• Automated databases
• Integrated circuit masks and masters
5. Engineering-Related
• Industrial designs
• Trade secrets
• Engineering drawings and schematics
• Technical know-how
• Blueprints
6. Customer-Related
• Customer databases
• Customer contracts
• Customer relationships
• Open purchase orders
7. Contract-Related
• License agreements
• Franchise agreements
• Operating licenses
• Subscription rights
• Futures contracts
8. Human Capital-Related
• Trained and embedded workforce
• Union contracts
• Employment contracts
9. Location-Related
• Mineral exploitation rights
• Easements
• Air rights
• Water rights
10. Internet-Related
• Domain names
• URLs
• Linkages
• Website design
As CONSOR continues this blog series on IP valuation, we will discuss methodologies used to value intellectual properties and intangible assets, valuation trends, and take a look into the future of IP.