Research On The Application Of Income Approach In Evaluating The Value Of Trademark Rights

Trademark is an important intellectual property for a company as part of intangible assets,which plays an increasingly important role in the competition among enterprises today and it has been not just a simple production mark for a long time,but the window that promote the company image externally.It is a powerful tool for the company’s products to open market.Trademark rights involves in more and more economic activities,and with so many today’s joint ventures,acquisitions,sale of assets,transfer of assets,asset-backed among large enterprises in the economic activities involving the disposing of trademark rights that a reasonable assessment of the value of the trademark rights is in favor of companies to recognize the important role of trademark rights and to fully excavate the development potential of the trademark rights.In China,the trademark market is not developed and not too much trading cases can be found in the market,and there is a big instability of the value of trademarks,so its evaluation in comparison with tangible assets,is more complex.Both at home and overseas,it’s common to assess the value of trademark with income approach,but the parameters of the income approach in assessing the value of the trademark rights is quite many and there exists abuse of parameter selection in previous application of income approach.As a result,how to exactly select and compute parameter relating to the assessment of trademark by income approach is a problem needed to be solved.This paper will demonstrate concepts relating to trademark rights first,analyzing both internal and external factors which have effects on the value of trademark rights.When it comes to the selection of ways of evaluating the value of trademark rights,this paper will analyze and make comments on concepts and application conditions of cost method,market and income approach.Eventually,income approach will be selected as the evaluation method of the value of trademark rights.The problems of current income approach as the evaluation method of the value of trademark rights mainly lies in the determination of expected profits of trademark rights,selection of discount rate,relationships among laws relating to trademark rights and so on.This paper will put forward resolutions to these mentioned problems and evaluate the value of trademark rights of selected case based on the given income approach.And the operation possibility of the given evaluation method of the value of trademark rights will be testified.In addition,problems to which should be paid attention when applying income approach will be analyzed in conclusion with the expectation to provide reference for our country’s evaluation of the value of trademark rights...