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Home THE TRADEMARK Value of a brand: which factors affect the evaluation

Value of a brand: which factors affect the evaluation

by Redazione / Thursday, 29 March 2018 / Published in THE TRADEMARK

There are many cases in which the interest in an economic valuation of a brand may arise. Among these, many cases of contractual and economic situations involving this distinctive sign, such as trademark assignment or license agreements or corporate transactions such as a merger or acquisition, if one or both involved companies are trademark owners.

value of a brand

In this post we talk about:

  • Which factors affect the evaluation
  • Method of economic evaluation: royalties

The need to determine the economic value of a brand can arise even in the presence of a dispute, such as when there is a claim for damage in the course of a lawsuit for infringement and, therefore, it is necessary to quantify the economic value of a mark in order to be able to quantify the damage.

Which factors affect the evaluation

Many factors are important in the economic valuation of a brand, among which:

  • The costs incurred in the registration;
  • The costs for maintenance and defense of the mark;
  • “seniority”, namely “the age” of the brand;
  • The degree of knowledge of the same in the public and advertising expenses made by its holder;
  • The market shared by the mark and consumers’loyalty.

Method of economic evaluation: royalties

There are many methods of economic evaluation of the brand: among the most frequent, we can include the “royalty rate method” and the method of “royalty relief”.

Royalty rate method

Those who follow the method of royalty rate believe that the economic value of the brand corresponds to the royalties that would be obtained by licensing the brand. The royalty rate is identified by comparison with homogenous market transactions.

Method of “royalty relief”

According to the system of “royalty relief”, the brand value would correspond to the total amount of royalties that – in a given period of time – the trademark owner would be forced to pay to a third party if was not the owner but had only the right to use the mark.

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Summary
Value of a brand: which factors affect the evaluation
Titolo articolo
Value of a brand: which factors affect the evaluation
Description
In the economic assessment of a brand, there are several factors that determine its value. Find out which are and which evaluation systems are most used.
Author
Eva Troiani
Publisher Name
Lawyer Eva Troiani - Registrare-marchio.com
Publisher Logo
Lawyer Eva Troiani - Registrare-marchio.com

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Eva Troiani

Eva Troiani (Attorney At Law)

Eva Troiani has been working for over 20 years dealing with all aspects of the trademark: from trademark application to trademark registration worldwide, providing assistance in the event of disputes; she proposes an extensive legal advice to companies and professionals. She is the author of all the articles in this website “registrar-marchio.com”, a project created with the aim of providing useful and updated information on the trademark’s world to all readers. You can follow the lawyer Eva Troiani also on her Linkedin profile.

Eva Troiani

The texts in this database are only for informational and scientific purposes and they are not to be considered official; we therefore decline any responsibility for possible errors or inaccuracies. All mentioned trademarks belong to their legitimate owners; trademarks, product names, trade names and the images of the products are the property of their respective owners. They are used in this database only for informational purposes, without any purpose of violating existing rights of others.
The information you obtained at this site is not, nor is intended to be, legal advice. You should consult Ms. Eva Troiani and/or a trademark attorney and/or an attorney at law handling with intellectual property for individual advice regarding any legal questions that you may have.

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  • Who we are
    • Eva Troiani law firm: trademark registration and legal protection
    • The Project Registrare-Marchio.com
  • Trademark consultancy
    • The Verification of Trademark’s Requirements
    • Trademark Search: identity and similarity
    • Where to register a trademark
    • Filing a Trademark Application
    • Graphic Creation of a Trademark
    • Trademark protection: the surveillance service
  • Trademark legal assistance
    • Trademark defense from objections of the Trademark Office
    • Trademark defense from disputes
    • Trademark Opposition Proceedings
    • Trademark Assignment and Licence Agreement
  • Contact
  • FAQ
  • Certification
    • Webinar 2026
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    • Webinar 2024
    • EUIPO Webinar 2023
    • SEE Webinar 2023
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