Contextual Brand Valuation – Analysis of the Current Brand Valuation Landscape and Introduction of a Systematic Integrated Approach to Intellectual Property Valuation

Eva Riemann (née Mosel) (Germany, MIPLC LL.M. Graduate 2004)

This research project seeks to point out that there is much more to value than a merely financial dimension. Legal, technical and business strategic factors also play an important role. Intangible Assets, especially brands, need a contextual framework to show all dimensions of value. For example, a brand for milk products may be worth very little in the hands of a pharmaceutical company, whereas it is likely to be worth considerably more if the proprietor is a food company and even more so if the brand is in the hands of a dairy company. The latter company will be able to use the brand for profit generation much more successfully than the former companies.

As an introduction, an overview is given of the nature of brands, important aspects of valuation of Intangible Assets in general and of brand valuation in particular. In the following part, current brand valuation methods are introduced and analysed. This is followed by a survey of several hundred companies which are asked to give information about their brand management strategy and about their view on brand valuation issues. After an analysis of this data, part four of the dissertation will be used to develop a new, systematic integrated model for Intellectual Property valuation. This model takes into account the above mentioned factors of value of an Intangible Asset and uses a unique methodology to arrive at a specific range of value.

Herewith, a brand can be evaluated and managed as an asset. For example, companies can use this method as a tool for even better resource allocation and strategic decision making.