How do the companies in a particular industry currently do valuation of their intellectual property?



How do the companies in a particular industry currently do valuation of their intellectual property i.e. patents, copyrights, trademarks, etc?
Every company shows the valuation of it’s intangible assets like patents on the balance sheet but how can we know that what method is being followed to arrive at the valuation by that company?

How do the companies in a particular industry currently do valuation of their intellectual property?
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One Reply to “How do the companies in a particular industry currently do valuation of their intellectual property?”

  1. I believe the best way to value a trademark is to consider revenue, marketing and advertising success. Take Coca Cola for example, if you wanted to buy the name and everything owned by the company such as factories and trucks etc. it could cost you $ 180 billion, but if you only bought the rights top the name and nothing else it could cost you $ 140 billion. The name is the most valuable asset of the coca cola brand because it is known worldwide and I had read somewhere that the phrase ‘coca cola’ is the second most understood phrase across the globe to ‘okay’, so a piece of intellectual property worth having right?

    Hope this goes some way to answering your question





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