The most common definition states that intellectual property (IP) is “A work or invention that is the result of creativity, such as a manuscript or a design, to which one has rights and for which one may apply for a patent, copyright, trademark, etc.” While so many assets are tangible, intellectual property is in the intangible category. It is distinguished by the fact that it doesn’t have a physical presence. While you cannot feel them, see them or touch them, intangible assets by their very nature are extremely important. From innovative business ideas to social media posts to musical compositions, intellectual property is the foundation of our society.
Performing an appraisal to gain awareness of the true worth of intellectual property is essential for companies and individuals. The process provides a defensible value of the IP – whether it is the Nike “swish”, the Susan G. Komen pink ribbon, the Coca Cola bottle, a Prada bag or other distinctive ideas, products and services to be sure that they are not used without permission. This is more critical than ever as today’s technology is enabling a high level of piracy as web content is so easily copied and replicated by fraud perpetrators or foreign competitors produce fake “knock-off” items that replicate the look of famous brands. In every instance, an intellectual property appraisal is an important tool for every business.