Trade Your Mark: how to value to trademark accurately prior licensing

#trademark

Valuing a trademark for licensing is like determining the worth of your secret sauce in grandma’s spaghetti recipe. It's not just about the ingredients but the magic touch that makes everyone crave it. When you’re ready to license your trademark, you need to know its true value – otherwise, you might end up selling your prized cow for average beans.

Imagine Nike deciding to license their swoosh logo. The value isn’t just in the design, but in the global recognition and trust it commands. People see the swoosh and instantly think of high-quality, trendy sportswear. That’s what you’re valuing – the reputation, the goodwill, and the potential income it can generate for the licensee.

Now, how do you pin down this value without a crystal ball? First, look at the market performance. If your trademark is linked to products or services that sell like hotcakes, it’s worth more. Picture Apple’s logo – just seeing it makes people line up for hours.

Next, consider the brand strength. Are you a household name or just a local celebrity? Coca-Cola's trademark is universally recognized, giving it a sky-high value. On the flip side, if you're known only in your neighborhood, don't expect the moon.

Also, assess your trademark's legal protection. Is it ironclad or full of holes? A strong legal foundation boosts value. Think of trademarks as castles – the sturdier the walls, the better protected your kingdom.

Lastly, potential earnings are crucial. Estimate the revenue your trademark can generate when licensed. It's like predicting the yield of a golden goose. If your brand can make a partner millions, your trademark's value shoots up.

So, when you’re licensing, remember: valuing your trademark is more than slapping a price tag on a logo. It's recognizing the blood, sweat, and tears behind your brand and demanding its worth. After all, you wouldn’t sell grandma’s recipe for peanuts, would you?