In a world where intangible assets are becoming central to business valuation, knowing how to assess the value of a trademark has become a strategic skill. Whether for a sale, licensing agreement, merger-acquisition, or legal proceedings, a reliable trademark valuation can turn a business decision into a competitive advantage.
But where do you begin? Which methods are most appropriate? And how can you ensure the relevance and accuracy of your valuation—especially in the Moroccan legal and economic context?
Why Is Trademark Valuation So Important?
A trademark is more than just a name or a logo. It is a strategic business asset that can:
- Generate long-term revenue,
- Strengthen customer loyalty,
- Increase the overall value of a company,
- Justify the terms of a license or franchise,
- Support a legal claim in cases of infringement.
The 5 Main Methods to Value a Trademark
1. Historical Cost Method
- Adds up past investments (creation, registration, marketing).
- Easy to document, but does not reflect reputation or income potential.
2. Market Comparison Method
- Compares to similar trademarks that have been sold or licensed.
- Anchored in market reality but limited by the lack of comparable data, particularly in Morocco.
3. Discounted Cash Flow (DCF)
- Projects future revenue generated by the trademark and discounts it to present value.
- A rigorous, finance-oriented approach, but relies heavily on realistic assumptions and financial forecasts.
4. Royalty Relief Method
- Estimates what a third party would pay to license the trademark if they didn’t own it.
- Common in licensing scenarios, but requires a reliable benchmark for royalty rates (usually between 1% and 10% of revenue).
5. Mixed Method
- Combines several approaches to obtain a more balanced value.
- Offers a more comprehensive perspective, but requires expert input and a tailored approach.
Why Qualitative Criteria Matter
A solid trademark valuation does not rely solely on financial metrics. Qualitative factors often have a direct impact on value, such as:
- Brand awareness and reputation in the target market,
- Scope of legal protection (territories, classes, enforcement history),
- Competitive positioning and market share,
- Potential for growth or extension (new products, franchises, licensing potential).
ISO 10668: A Global Standard for Trademark Valuation
To ensure a consistent and recognized methodology, trademark valuation professionals may refer to ISO 10668. This international standard combines three pillars of analysis:
- Financial (income streams, returns),
- Legal (IP rights, protection scope),
- Behavioral (brand loyalty, perception, image).
While not mandatory in Morocco, ISO 10668 is often used in international transactions or for subsidiaries of global groups.
Conclusion: Align the Valuation with Your Objectives
There is no one-size-fits-all method. The value of a trademark depends on the context and goals: selling a business unit, negotiating a licensing deal, managing litigation, or optimizing IP portfolios.
Combining rigorous financial analysis with qualitative insights turns trademark valuation into a strategic decision-making tool.
📩 Looking to assess the value of your trademark? Our experts are here to help.
📧 Email: info@hnh-iplaw.com
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