Brand and Trademark Valuation
Trademark or brand means symbols, logos that are used for referring to the products or representing them. It can be called in various terms such as trademark, brand and etc. In terms of business, brands are more meaningful than being just a logo or trademark that differentiates products and indicates ownership. In fact, brands have monetary values that can be appraised, study and research on world-famous brand values such as Interbrand group have revealed the 2018 brand data and information for education which the 4 most valuable brands are: Apple, Google, Amazon, and Microsoft.
Therefore, the brand is considered as a type of property that is very unique and has a huge influence in business, intellectual property rights, legal rights, continuously developed and is also one of the tools and strategies to compete and differentiate yourself from the market. In this case, the business organization must have strong brand management in order to be accepted by consumers resulting in the concept of brand and trademark valuation.
According to the consumer’s perspective, brands are measured from awareness, attitude, attachment, and loyalty. On the other hand, the value of brands in terms of products is measured from market share, revenue and etc. Therefore, adding value to the brand is basically increasing the intangible assets of the business and also benefits when launching new products, blocking competitions especially for those entering the market.
Stronger brand values will receive more recognition by traders, distribution channels, and a wide distribution of products. Those brands that are highly well-known tend to have more negotiating or bargaining power, resulting in a lower amount for placing the products as well as receive a better allocation of space in the store, market and etc. That is why brands are very important and valuable to the products. Therefore, brand valuation is another way to measure the strength of each brand, level of business which includes communication to consumers and society to be recognized in today’s market.
There are plenty of valuation methods to use in brand and trademark valuation which depends on types of products, sufficiency, and reliability of the information. In addition, brand status on the appraisal date also has an influence on selecting the valuation method. However, more than 1 valuation method should be used in the appraisal in order to compare and review the appraised value. All the valuation methods that can be used when it comes to brand and trademark valuation are ‘Cost Approach’, ‘Market Approach’, and ‘Income Approach’ by calculating the difference in selling price (Price Premium), the right rental fee (franchise method) which is considered as a very high acceptance method for this type of property valuation.