D’Souza, Roy P. --- "BRAND DIFFERENTIATION AND INDUSTRY SEGMENTATION: DRIVERS FOR TRADEMARK VALUATION IN CORPORATE TRANSACTIONS" [2016] ELECD 360; in Calboli, Irene; de Werra, Jacques (eds), "The Law and Practice of Trademark Transactions" (Edward Elgar Publishing, 2016) 149

Book Title: The Law and Practice of Trademark Transactions

Editor(s): Calboli, Irene; de Werra, Jacques

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781783472123

Section: Chapter 7

Section Title: BRAND DIFFERENTIATION AND INDUSTRY SEGMENTATION: DRIVERS FOR TRADEMARK VALUATION IN CORPORATE TRANSACTIONS

Author(s): D’Souza, Roy P.

Number of pages: 22

Abstract/Description:

Over the past decade, the fair value of intangible assets and intellectual property has been much more prominent on the balance sheets of private and public companies on a global level. While this transition has largely been driven by changes in financial reporting standards, as applicable to business combinations of all forms, a combined increase in licensing and asset (nonenterprise level) transactions has led to a renewed focus on the value creation opportunities afforded by this asset class. Specifically, trademarks, trade names, and brands are a class of marketing related intangible assets where it is not uncommon for corporations to have dedicated, and highly experienced professionals, whose sole focus is value creation and maximization through a combination of organic development, acquisitions, and licensing activities. In this chapter our goal is to provide a foundation for how corporations and investors recognize and measure trademark value, particularly in the context of transaction considerations. We will first review the concept of trademark/ brand life cycles, highlighting how managing brands and attempting to consistently measure value creation provides actionable information for corporate managers. As this knowledge base is commonly rooted in income- and market-based facts and assumptions, we will discuss how this data provides a valuation framework from which to expand on.