Your Most Valuable Assets
You can't touch your most valuable assets.
Intangible property, also known as incorporeal property, describes something a person or corporation
can have ownership of and can transfer ownership to another person or corporation, but has no physical substance, for example brand identity or knowledge/intellectual property. It generally refers to statutory creations such as copyright, trademarks, or patents. It excludes tangible property like real property (land, buildings, and fixtures) and personal property (ships, automobiles, tools, etc.). Wikipedia
Your Most Valuable Assets
Intangible Assets in the New Economy
The business world faces a transformation to a value focus on intangible assets from tangible assets - the New Economy. Thirty years ago, 80% of business value came from tangible assets such as bricks, mortar, and machinery.
Today 70-80% of a company's value comes from intangible assets. The evolution from an industrial economy to a technology economy then to an intellectual property, IP economy is in its early stages. As with all change, you find new opportunities and risks. A paramount risk comes from unprotected intellectual property. This why China's theft of IP is in the news. And, why we added a CyberSecurity program. See CyberSecurity Small Business Survival Risk at the bottom of the page.
Corporate intellectual property, IP (items such as patents, trademarks, copyrights, domain name/website, business methodologies, trade secrets, and over 100 others), goodwill and brand recognition are all common intangible assets in today's marketplace.
An intangible asset is an asset that is not physical in nature. An intangible asset can be classified as either indefinite or definite depending on the specifics of that asset.
Intangibles Get Complicated. A company's brand name is considered to be an indefinite asset, as it stays with the company as long as the company continues operations. However, if a company enters a legal agreement to operate under another company's patent, with no plans of extending the agreement, it would have a limited life and would be classified as a definite asset.
You will discover with our Intangible Asset Audit that you have valuable identifiable assets not on your balance sheet, potentially over 129, and assets that you may miss getting paid for when you sell. Are you adjusting and changing to the new economy, or will your business and money be left behind?
Call (513) 266-3226 or e-Mail valuation@CertifiedBusinessAppraisal.com for more information on the very affordable first step service.
You are welcome to ask anything. Here are some topics and articles:
- Have you identified your intangible assets and intellectual property?
- Do you have a process to transfer your intangible assets when you sell?
- Have you taken steps to protect and enhance their value? Most firms have not inventoried or protected these valuable assets.
- Why have a tangible asset inventory? Insurance is not the only reason.
What is Intellectual Property, IP and Why is IP Valuable?
Intellectual property, IP is a category of property that includes intangible creations of the human intellect, and primarily encompasses copyrights, patents, and trademarks. It also includes other types of rights, such as trade secrets, publicity rights, moral rights, and rights against unfair competition. Artistic works like music and literature, as well as some discoveries, inventions, words, phrases, symbols, and designs, can all be protected as intellectual property.
The intangible nature of intellectual property presents difficulties when compared with traditional property like land or goods. Unlike traditional property, intellectual property is "indivisible" – an unlimited number of people can "consume" an intellectual good without it being depleted. Wikipedia
How you handle IRS Audit risks is an example. See Reasonable Compensation Risks.
"IP's value comes from a limitless supply of customer consumed benefits (IP's value is not diminished by use, but enhanced) for a limitless number of customers with limited maintenance costs for the IP by it's owner. The proverbial perpetual money making machine."
David A Dinsmore, CertifiedBusinessAppraisal.com.
Why Intellectual Property Matters
Ignored and Unappreciated
Intellectual property (IP) represents a large pool of unidentified business assets with unrealized value that have not been monetized. Building market sales, preparing to sell the firm or specific IP Assets are three reasons to identify and value IP.
Our IP research shows that 60% to 80% of a profitable and marketable entity's value is intellectual property, IP. Company stakeholders often ignore IP's value and business advantages, and focus primarily on the costs to produce the benefits of the IP.
The new facts require most owners and organizations to adjust their value paradigm from real estate and FF&E (touchable things) to intellectual property, IP. IP is intangible. IP is stated as a cash value on your balance sheet when adjusting for intangible assets. Valuation of your IP may be done individually or for the entire portfolio of identified assets. Often the entire portfolio is more valuable than the sum of the individual assets.
Today, IP is no longer overlooked because it is difficult to identify and categorize, quantify and qualify, and visualize. Only an IP AuditSM reveals their valuable contributions. Wind isn't seen, but the positive effects are powering electric turbines today.
The advantages of intellectual property, IP assets drive market, sales revenue and sale value benefits for owners and groups of all types, sizes, and industry profiles.
What is Intellectual Property (IP)
Intellectual property (IP) refers to creations of the intellect for which a monopoly is assigned to designated owners by law.
[1.] Intellectual property rights (IPRs) are the protections granted to the creators of IP, and include trademarks, copyright, patents, industrial design rights, and in some jurisdictions trade secrets.
[2.] Artistic works including music and literature, as well as discoveries, inventions, words, phrases, symbols, and designs can all be protected as intellectual property. Source: Wikipedia
The tangible and intangible qualities that make a company's offer unique are collectively called their BRAND. A successful company's special ways of doing things creates their BRANDING PROCESS, a unique type of identifiable and valuable intellectual property (IP) and intangible asset. Without branding, what you offer is a commodity.
You are welcome to call and ask absolutely anything. In addition, you will learn something new and useful about intellectual property (IP). Call (513) 266-3226 today.e-Mail valuation@CertifiedBusinessAppraisal.com
Here are some topics and articles for our discussion:
- Your Ten Advantages of Identifying Your Intellectual Property
- IP Audit - What Is The IP Discovery And Audit Process?
- What Is My Intellectual Property, IP Worth?
Identify Your 10 Intellectual Property Advantages
CertifiedBusinessAppraisal.com uses a proprietary IP Audit, IPASM of over 129 branding intellectual properties with theft protection and valuation options.
Your audit identifies, confirms, and maps your intellectual property (IP) process and positioning. Without an organized IP approach in the new millennium, 80% of businesses will fail to sell or transfer. The IP AUDIT, IPASM spectrum mapping process will help ‘for-profit’ companies build your market value and ‘non-profit’ organizations advance your cause by integrating the ten IP AUDIT, IPASM advantages.