TRADEMARKS, PATENTS and DOMAINS How much are they worth? How to value them?

Knowing the market value of these assets is important information for company managers and those responsible for economic and financial matters, as this knowledge can enable them to carry out commercial manoeuvres, buy and sell, and obtain liquidity and financing.

It is also useful when a private individual wants to sell or license their registers to a third party.

How do we value these assets? In order to make a true estimate of the value of these assets, legal and economic aspects, as well as the individual characteristics of each case, have to be taken into account.

There are four valuation techniques/methodologies:

  • Market focus:

The market approach is by far the easiest to understand and the most widely used method, especially in the field of marketing and trademarks. It measures the present value of future earnings, obtaining a consensus on their value based on what others in the market have judged them to be worth.

  • Price focus:

The price approach is a technique that seeks to achieve a measure of future property benefits by quantifying the amount of money that would be required to replace the future service capacity of the property in question.

  • Income Approach:

The Income approach moves away from the price of building or creating the property and focuses on considering the ability of the property to produce income.

  • The Twenty-Five Percent Rule:

It calculates royalties at 25 percent of the gross profit, before tax, i.e. of the commercial operation in which the licensed property is used.

If you require support and advice in this area, please do not hesitate to contact our professionals to help you value and benefit from your assets.

Contacto: domimark@domimark.com

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