Intellectual property assets include anything that is created from a mind or is just an idea. In business, all images, symbols, artistic work, names and logos are part of it. In many cases, companies do not seem aware that their business assets have some intellectual property rights, and they have a market value similar to tangible assets. Nowadays, intellectual property valuation of assets can assist you in running a successful business with an identity. A business must protect its intellectual property for gaining a competitive advantage.

Intellectual property rights aren’t worth much on their own. The value stems from the strategic ability to restrict other companies from exploiting the intellectual property and benefitting from the goods, processes, and services that come with being the only owner of the IP.

How do you value intellectual property?

It is the right of the owner of an IP asset to exclude competitors that gives it value. The value of an IP asset should be determine by:

• It must provide its owner with measurable economic benefits
• As well as raise the value of other assets that are associated with it.

Future advantages:

IP assets are valued according to their potential economic benefits to their owners or authorized users in the future. They can be valued by:

• The IP asset can be directly exploited by including it in the product
• By offering or licensing the IP to a third party
• As well as lowering the threat of competition through barriers.

What are the Intellectual Property Assets?

On a broad scale, IP assets are categorize in two ways: physical and intangible. Physical assets include machinery, equipment, buildings etc. Intangible assets are ideas, expertise, designs, and human capital. When IP assets are protected, they become tangible and have an intrinsic market value by intellectual property valuation.

1. Patent:

A patent is a legal monopoly that gives an exclusive right to an inventor/owner to make, sell, market, or import a product/invention. Patents contain detailed descriptions of how to make and use an invention, along with a list of claims. Patents are of two types:

• Design patents are valid for 14 years from the date of filing a patent application.
• Plant patents offer protection for 20 years.
• A utility patent covers any process, machine, manufactured item, composition of matter, or improvements.

Benefits:

Patents are essential and serve as assets to a company in several ways:

• They provide a legal monopoly on a product or process the company sells, uses or markets.
• The professionals may provide licensing revenue.
• They have value and are sellable.

2. Copyright:

Copyright is a legal protection given to content like writing, music & a piece of art and their artists. When a person writes a story, creates artwork or a software program, the copyright provides legal ownership to them. It offers the exclusive right to use, copy, sell and distribute the work for a certain amount of time.

Benefits:

• Copyright enhances the value of the product.
• It provides a public record of ownership.
• It can create a presumption of ownership, which can be helpful for enforcing copyrights.
• An effective way to enforce copyrights is by filing a lawsuit for copyright infringement.
• Provides the right to claim statutory damages, attorney fees, and costs of suit.
• Provides protection against the importation of infringing works.

3. Trademark:

A trademark is a word, phrase, sound, logo, aroma, or symbol that represents a company or its products. A trademark serves to protect a company’s intellectual property. In addition, it ensures that your business is protects from external threats, and it distinguishes you from others. As long as they are business-relate, you can trademark the following:

• Names of companies or products
• Words or slogans that relate to brands or marketing campaigns
• Logos or symbols that identify your brand
• Sounds, colors, and aromas specific to your brand

Benefits:

• A trademark gives you the exclusive right to use the mark in business.
• Allows you to use the registered trademark (®) symbol.
• Enables you to license your intellectual property.
• Allows you to defend your mark from dilution.
• It Allows you to protect your mark from consumer confusion.
• Allows you to defend your mark from other unfair competition cases like passing off and misappropriation.

4. Trade secret:

Information that provides a competitive advantage is a trade secret, for example, a computer program, chemical formula, customer list, or market research. A trade secret is not a patent, but you can claim it if your invention is not patent-eligible. In fact, these are the secrets that are valuable and confidential information and can’t be disclose.

Benefit:

• Unlike patents, trade secrets offer protection for abstract ideas.
• Trade secrets provide indefinite future protection indefinitely, which makes them appealing.
• Protecting your trade secrets is relatively inexpensive and straightforward.
• Trade secrets can create a sense of mystery and exclusivity for your competitors.

Conclusion:

Intellectual property valuation involves managing and minimizing IP risks in the modern marketplace. If the Intellectual Property assets are secure, it will keep the value high of the Intellectual Property. Although many companies run in the same industry, and the IP protection makes them unique and secure in the market.