What is trademark valuation?

Trademark valuation estimates a mark’s monetary value at a particular date using methods appropriate to the purpose. A trademark may be treated as an economic asset that can be sold, licensed, pledged or used as security, and considered in corporate mergers and acquisitions.

What do we review in a trademark valuation?

• Registration and rights: The scope and term of registration and the register entries.
• Market and awareness: The brand’s market position and recognition.
• Brand elements: The word, logo and forms of use.
• Classes and products: The goods and services from which the brand earns revenue.
• Royalty rates: The rates paid under comparable licences.
• Financial data: Sales, profitability and forecasts for future periods.

How do we proceed?

We explain how to use the report in an assignment, licensing or security process.

• Purpose and date: Together we determine which transaction the valuation is for and the valuation date.
• Legal review: We review registrations, register entries, licences and any disputes.
• Data collection: We compile financial information, market data and comparable transactions.
• Method and calculation: We choose the approach suited to the purpose and calculate with clearly stated assumptions.
• Valuation report: We present the method, assumptions and result, with reasons, in a report.

Trademark valuation methods

The international standard ISO 10668 recognises three main approaches to monetary brand valuation. The income approach discounts the future economic benefit the brand will generate to its present value. A common application of this is the relief-from-royalty method: it calculates the licence fee you would pay if you had to rent the brand. The market approach looks at sale and licence transactions involving similar brands. The cost approach is based on the cost of recreating the brand. The method is chosen according to the purpose of the valuation.

Financial analysis alone, or with a legal review?

A valuation report is an expert opinion; the transaction price is set by the parties or the competent authorities.

• Financial analysis alone
• The calculation assumes the mark is registered.
• Revenue from products outside the scope may be included in the value.
• Pending oppositions or lawsuits may be overlooked.

• Valuation with Kupon Patent
• We check registration, class and term details in the register.
• We link revenue to the protected goods and services.
• We set out legal risks separately in the report.

Who is trademark valuation suitable for?

• Those wishing to sell or assign their trademark
• Companies planning to license their trademark
• Businesses involved in a merger or company sale
• Businesses wishing to provide the mark as security