What Are The Types Of Trademark Valuation Methodologies?

A trademark distinguishes your goods and services from others. They need to be distinctive. A trademark valuation when concerns legal right supporting brands it somehow becomes similar to that of brand valuation. It is the process by which a company’s trademark worth is calculated. Trademark valuation UAE is mainly based on the brand’s earning potential, future earning power which would be based on income history.

Trademark Valuation Methods

Having a registered trademark increases the intangible asset of your company. The most accurate valuation could be a price at which the seller is ready to sell and the price the buyer is willing to pay. There are mainly four types of methods when it comes to trademark valuation UAE.

Trademark Valuation UAE Based On Future Income: The most popular method of trademark valuation of a company is the future income method. In this method, the future income of the trademark is calculated from the present value so as to arrive at a present-day valuation. In this, you can calculate the future income of your company in a very easy way again the work of trademark valuation is also done.

Market Value Method: In this method trademark value UAE is calculated by obtaining market data based on selling, buying or licensing. The key factors on which this kind of valuation is based is relevant and dependable market data as well as similarity of the transaction. Therefore these are the most important factors when it comes to calculation of trademark valuation.

Method Of Historic Cost: The key factors when it comes to calculating trademark valuation by this method is cost acquired by advertising and brand building. It is a conservative method of calculating trademark evaluation. This method is used by companies which new to the market.

Relief Royalty Method: This method is based on the evaluation of the royalty savings due to the ownership of the trademark. Royalty earned on that trademark and the additional revenue on that trademark is used to calculate trademark value UAE.

Uses Of Trademark valuation

Common uses of trademark valuation are licensing because calculating trademark value proves that the company is legally licensed.

Trademark valuation helps you with legal transaction regarding any purpose be it sells, delivery, advertising or brand cost.

Strategic planning, accounting, and management information can be planned and handled after calculation of trademark valuation. Accounts can be recorded and kept for future use which plays a very important role when opting for valuation based on future income. Gradual trademark valuation helps you in tax planning and litigation support.

Trademark evaluation is important to manage your company assets and helps you in planning for the future. Calculate your trademark value and learn about your company’s trademark worth.