About Trademarks.

 

A trademark is a fantastic business asset, but is usually a complementary asset to other intangible assets.  The other intangible assets (eg. Business method, system, process, product or service) usually form the core of the value transfer.  Without a core value delivery mechanism it is very difficult to leverage value from a trademark.

 

In my view, only established brands have the opportunity to leverage a trademark in isolation, there are some exceptions but they are very few and far between.

 

Generally you will find it very difficult to leverage value from a new trademark in isolation.  The reason for this is that you cannot trademark established terms or existing sayings.  If someone is creating something new, there are usually options for working around your trademark by using slightly different wording etc.

 

Commercialising Trademarks

 

To commercialise a trademark, strong brand recall amongst a specific target market is often required.  This “Association” between existing awareness and a new product is a common reason that someone might license a trademark.

 

In order to commercialise most trademarks you will need to develop and promote a product or service that generates strong brand recall.  Once this initial “Brand Building” is done, the issue of licensing can be considered. 

 

An “intellectual asset bundle” can be created and is usually what is licensed as part of a Franchise Agreement.