We are thrilled to bring you the latest update from the world of intellectual property, specifically focusing on brands and trademarks. The International Trademark Association (INTA) has just released its groundbreaking Intellectual Property Reports for Brands, addressing long-standing concerns regarding the valuation and communication of intellectual property (IP) value.
In today’s business landscape, a company’s most valuable assets often lie within its intellectual property, encompassing trademarks and related brand assets. However, the true “real” value of IP is frequently miscalculated or underestimated, leading to miscommunication. The introduction of the study highlights these challenges and underscores the importance of addressing them.
Responding to these interconnected concerns, Zeeger Vink, President of INTA in 2022 and a member of MF Brands Group in Switzerland, convened a task force to thoroughly study the issue. The resulting report provides INTA with a set of recommendations on how the association can effectively tackle this problem.
“As a community, we understand and appreciate the significance of IP for businesses, but we still struggle to convey this adequately to society at large,” remarked Vink. “How can we improve this? It starts with comprehensive IP reports.” Vink also emphasized the essential role of IP in protecting innovative brands and fostering consumer trust, making it a top priority to establish a standard for conveying the importance of IP.
INTA’s efforts have primarily focused on two main streams of work: corporate IP reports for brands and financial IP reports for brands.
Corporate and financial IP reports share similar objectives – informing stakeholders about the existence and value of IP assets and their contribution to business success. However, financial IP reports are subject to various rules and regulations worldwide. According to current international accounting standards, values of intangible assets associated with internally developed brands cannot be included in corporate balance sheets. INTA highlights that “the effect of this general exclusion is that significant aspects of companies’ value remain undisclosed.”