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Evaluation of IP objects
Intangible assets and IP assessment
The problem of evaluation of intangible assets has been probably one of the most discussed questions recently.
Nevertheless this sphere still remains terra incognita in many respects. Intellectual property is a result of human mind activity and creativity protected by law. It is not tangible, does not have material embodiment, is devoid of colour, taste and smell. Intellectual property can be purchased, sold, insured or lost through one's negligence or by means of deceit. At the same time IP can be of high economic value that is often underestimated through lack of knowledge. Therefore IP can be considered the main asset of the company and can open new market horizons.
IP owners can:
— use IP to their discretion;
— prohibit others from using the invention, industrial model and industrial design;
— allow to use some of the IP objects on certain conditions.
The said advantages can be used by IP owner to control the market with the possibility of increasing the sales volume. Companies that possess large portfolios of exclusive rights and that record in their books the value of their intangible assets manipulate the markets of high-technology products thus getting multi-million profits, minimizing at the same time the amount of taxes paid. Suffice to mention such well-known Trademarks as Coca-Cola, Microsoft, IBM and GE that are at the same time the most expensive ones.
In 1998-2002 a number of documents were adopted in the Republic of Belarus regulating assessment and accounting of IP and introduction of the said IP objects into commerce. The companies were to produce a value of all IP objects on their balance sheets as intangibles.Secondly, in 2000-2001 sales volumes of intangible assets including those under copyright and licensing agreements were exempt from VAT (value added tax).
IP objects include copyrights and contiguous rights, works of art, literary works, scientific works, musical compositions and performances, records, radio- and TV-programmes and rights to the IP objects inventions in all spheres of human life, scientific discoveries, designs, trademarks, service marks, logos, protection against unfair competition as well as all other rights relating to intellectual property in industrial, scientific, literary and artistic fields.
After the evaluation has taken place, a company may receive an additional income from licensing. Both the seller and the purchaser benefit from the process since the former gets additional profit and the latter saves time and money buying the product ready to be introduced into commerce.
© 2010, IP Credo
Tel: +375-17-2101800 (2844817) Fax: +375-17-2101030 (2846295)