Daily Archives: August 30, 2010

How much is a trademark or a business name worth?

Admittedly, this is not the easiest questions to answer.  However, business names or trademarks can be an invaluable part of a business portfolio or a business development strategy.  There are multiple ways of generating value from a trademark, such as the following:

1) create licensing revenues;

2) enable you to test out new lines of products or services;

3) allow expansion into new markets;

4) prevent competitors from entering a particular market or line of business;

5) use it to acquire financing;

6) increase the asking or sale price of your business; and

7) a variety of other business and legal strategies that can assist you to generate value from your business name or mark.

However, in terms of monetary values, a trademark is generally worth more, when it is used in combination with another asset.   In addition, aggregating a line of products or services under a mark or family of marks increases its value.  The market value added theory is often used to monetize the value of a mark.  Costs of developing the mark (including advertising, legal fees, etc…) are also another method of determining the value of a trademark.   Fair market value based on licensing revenues or sale of the mark or a similar mark is also another good way to value a mark.

There are several other theories of trademark valuation and using a trademark as part of an overall effective business strategy.  Figuring out which theories to apply to your business name, mark or industry can help you grow your business.  If you have any concerns or questions relating to valuing or using your mark or business name, then please feel free to contact us.