Trademark Valuation Method
Trademark Valuation and Market Value Measurement
When evaluating trademark rights, not only the trademark name but also packaging, colors, designs, and other intangible elements should be considered. Trademark value is one of the most important assets a business owns, and through proper analysis, commercial advantages can be gained.
Knowing the true value of your trademark strengthens your marketing strategies and investment decisions.
3 Key Tests for Measuring Trademark Market Value
✅ 1️⃣ Distinctiveness of the product or service
When the trademark is mentioned or recalled, can consumers distinguish the related product or service?
✅ 2️⃣ Does the brand hold value for third parties?
Do other individuals or companies show interest in the trademark, apart from the trademark owner?
✅ 3️⃣ Is there a buyer willing to pay for the trademark?
Do third parties consider paying to lease, buy, or acquire the licensing rights to the trademark?
If the answers to the first two questions are "yes," the result of the third test is typically also positive.
Determining the Economic Value of a Trademark
Market-based analysis methods are used to evaluate a trademark economically.
Comparative Sales and Royalties Analysis ✔ Sales figures and licensing fees of similar trademarks should be examined.
✔ The trademark’s strength should be calculated by comparing it with competing trademarks.
Trademark Expansion Potential and Power ✔ The trademark's potential for future growth and its ability to expand into different sectors should be assessed.
Determining Royalties Value ✔ The royalty rate calculated specifically for the trademark is associated with potential revenue to determine the trademark's net economic value.
Determining Future Income of the Trademark ✔ The trademark’s projected lifespan and growth rates are analyzed to estimate future cash flow.
Why is Determining Trademark Value Important?
Knowing the value of your trademark:
✔ Helps you make strong agreements with investors and business partners.
✔ Provides you with an advantage in licensing, franchising, and sales processes.
✔ Strengthens your trademark strategies and marketing efforts.
✔ Ensures the accurate calculation of your company’s value, aiding in financial planning.
Trademark Valuation and Protection Services with Başalan Patent
Risk and Discount Rate Determination ✔ Risks associated with acquiring or operating the brand are analyzed, and an appropriate discount rate is established.
As a result of these analyses, the economic value and potential returns of the brand can be clearly calculated.