IP Evaluation for trademark

The tool does not give a value in monetary terms, instead it gives each trademark a score. The higher the score, the higher the value of the trademark to your business.

The tool can be used for both applications and registered trademarks, which are both called trademarks in this tool.

It is possible to use IP evaluation for both primary trademarks, secondary trademarks and private labels.

Primary trademarks, secondary trademarks and private labels

A primary trademark is typically the business name, and sometimes also coincident with the business? primary product, whereas the secondary trademark can be a product line under the primary trademark.

Private labels are the retail shops? own labels and are often competing with other well-known trademarks sold in the retail shop.

Preparatory work towards setting a price

If your business is relatively inexperienced with valuation you can still use the tool, as it leads you through a number of relevant considerations which you should make when trading rights. The tool focuses on the general opportunities and risks that are associated with the right, and by asking about specific factors that may affect the value of the right, it gives you an insight into the right?s particular strengths and weaknesses. IP Evaluation is considered to be a preparatory task for the meeting with your IP consultant, in which you can go through the results and find the correct price for your specific right together.


Do you plan to hold the score that this tool will provide you with up against other scores?


Do you use this tool because you plan to trade with IPR?


Questions and possible answers

The model consists of 10 questions, all contributing to providing an overview of the value of your trademark to your company. The topics covered are as follows:

  1. The strength of the trademark
  2. The geographical coverage
  3. The scope of application of the trademark
  4. The domain name
  5. The brand awareness
  6. The preceding sign of the brand awareness
  7. The market share
  8. The market growth
  9. The life expectancy
  10. The distinctiveness

The questions are carefully selected and are based on the theory and research already available in the field of evaluation.

Each of the 10 questions has 8 predefined answers to choose from. A score ranging from 1 to 8 points is attached to each answer. You should be aware that the extreme points 1 and 8 are only used for trademarks which on the given factor perfom in excess of the average. In this way it is possible to distinguish between the most valuable and the valuable trademarks.

Some of the answers to the questions in the model are subjective. E.g., you need to answer whether a share is big or small, and in this connection it is important to have predetermined intervals according to which all the company's trademarks are evaluated in order to ensure consistency in the event of a later comparison of the scores.

Be honest and realistic when you answer the questions, otherwise the model does not produce a usable result.

Information about the trademark which is requested evaluated




Has the value been evaluated prior by this method? If so, state the score and date for such prior evaluation


It is important to set up a working group

Typically, a different value will be attached to a patent depending on the person who is to quantify or describe the value. It is therefore important to select the same persons to work with this model, when a business wishes to estimate the value of a patent. Similarly, it is essential that all relevant stakeholders form part of the working group, who is intended to work with the model. A list of potential stakeholders may include the following, but is not limited to: the Marketing department, Management & Strategy, R & D department and the IPR department.

The working group should take notes in order that the whole process is documented. Thus a third party will get a better understanding of the result of the model, and it will be easier to trace prior results and, if needed, to continue working with them.

A chairman for the working group must be appointed. The chairman is responsible for implementing the evaluation.

A notetaker must also be appointed. It is the notetaker's responsibility to take notes during all discussions, and to see to it that all historical data are included. Such notes should subsequently be copied to the note fields of the model.

All members of the working group are recommended either to help one another in completing the model or to complete it individually, upon which the results should be compared and discussed. This leads to a good dialogue and matching of expectations in between the departments, and thus a more reliable resultat.

Below you can enter the members of the working group. Note that setting up a small group is highly recommended. The number of group members depend on your organisation.

1. How strong is your trademark?

The strength of a trademark is its ability to overcome oppositions from third parties. The higher the probability that a trademark will be cancelled if opposed, the lower the value of the trademark will be.

When evaluating the strength of the trademark, you should consider to what extent it is probable that precisely your trademark can risk being cancelled from registration.

A trademark which is registered and has been in continuous use is most at risk for being opposed in the first year, however, according to the Danish Consolidate Trade Marks Act, oppositions can be lodged in the whole lifespan of the trademark.

How would you rate the strength of your trademark

1 point: The strength of the trademark is open to doubt
...
8 points: The trademark is very strong


In your opinion, which measures can be taken in your specific situation to improve this score?

See possible surgestions here

Below please state your thoughts, discussions, background, reservations etc. which have influenced the rating so that others can gain insight into the factors contributing to the value of the trademark.

Trademarks that have been put to use

In Denmark trademarks which have been put to use enjoy the same protection as registered trademarks, in case such use can be duly documented. However, it is important to note that the protection of trademark rights established through use is not recognized in all countries, meaning that you cannot be certain that your right is protected before you have checked the national legislation of the country in question. Likewise, trademarks put into use will not appear in a trademark register search, and others will therefore not know whether they are infringing your rights before you actively lodge an opposition against their trademark. You must be able to document sufficient use of the trademark to obtain protection, and, likewise, you will only obtain protection for the particular goods or services, for which such use can be documented.

Your trademark can be cancelled from registration if:

- Another company has registered a similar or identical trademark prior to your trademark for the same or similar goods and/or services in the list of goods.

- A third party claims that the trademark lacks distinctiveness beause it does not fulfill the requirements of the Consolidate Trade Marks Act and therefore should not have been registered.

- Your trademark meets with oppositions from another person who has put a similar or identical trademark into use prior to your registration.

- A trademark put into use only enjoys protection as long as it is actually used, and only for the goods for which the use can be documented. Therefore you may risk losing the right if your use of the mark is found not to be sufficient, or ceases.

- If you have not used the trademark for the products concerned for a period of 5 years,"&" equivalent to the statutory use requirement. The trademark can thus be partly cancelled meaning that it may be rendered invalid for some or for all the goods/services for which it is registered.

2. Is your trademark protected in all relevant countries?

Relevant countries may, e.g. include countries where you travel or where you expect to travel in future. These may include, e.g. both producer markets, sales markets as well as import and export markets. You do not need to have your trademark registered in the countries only used as transit countries for your goods as long as you do not market, sell or transfer goods for sale in these countries.

If you await the result of an opposition in one or more countries, you should consider the trademark as being in force until proven otherwise.

How would you rate the scope of protection for your trademark?

1 point: My trademark is protected in a few or no relevant countries
...
8 points: My trademark is protected in all relevant countries


In your opinion, which measures can be taken in your specific situation to improve this score?

See possible surgestions here

Below please state your thoughts, discussions, background, reservations etc. which have influenced the rating so that others can gain insight into the factors contributing to the value of the trademark.

Where is the trademark protected?

Trademarks can only obtain protection in countries where they are registered, except a few countries that also protect trademarks put into use. Thus, another company can legally produce and sell products/services under your trademark in the countries where the trademark is not registered and thus prevent you from selling your products under your own trademark in these countries. It will also be possible for others to register your trademark before you manage to do so.

You may apply in one or more countries via the national trademark offices or you may apply in more countries at a time, either via the European office OHIM, whereby the trademark is protected in the whole of the EU, or via the international organisation WIPO, whereby the trademark can obtain protection outside the EU borders.

3. To which extent is it possible to use your trademark in connection with other products and services than your primary products and services?

The wider the scope of application covered by your trademark, the greater the potential for improving profit performance, and thus the higher the value of your trademark will be. It can be difficult to know exactly whether the list of goods of your trademark right is sufficiently broad. To assist you in this evaluation and especially when buying or licensing, you will have to compare you marketing strategy against the list of goods of your trademark to see whether your trademark is sufficiently protected.

How would you rate the agreement?

If your trademark is not registered, but exclusively has been put into use, you should select the score 1, since, at most, your trademark thus covers the products and services for which you can prove use.

1 point: My marketing strategy/business strategy is not in agreement with the list of goods/services of my trademark
...
8 points: My marketing strategy/business strategy is in agreement with the list of goods/services of my trademark


In your opinion, which measures can be taken in your specific situation to improve this score?

See possible surgestions here

Below please state your thoughts, discussions, background, reservations etc. which have influenced the rating so that others can gain insight into the factors contributing to the value of the trademark.

Is my list of goods broad enough?

A lot of resources are needed to market a trademark, and, consequently, it can be important for financial reasons to avail yourself of the possibility to use the goodwill you have obtained through the trademark you are already using. You can accordingly profit from the user brand awareness of your trademark to market new products and services. However, you should be aware that new products and services are not always categorized as your first product and thus comprised by the list of goods and services for which the original trademark is protected.

This will be especially important if you are in the process of buying a new mark, a licence or increasing your product range. If the list of goods of the new trademark does not comprise the products that you wish to add to your product line, you risk being without protection when you put your products on the market. In some cases the list of goods is broadly defined and, accordingly, there will be no problems, however, in other cases you will probably have to consider applying for a new trademark that covers the new products.

4. Is there a need for a matching domain name and is it registered?

Some trademarks depend on a matching domain name ? this especially applies to e-businesses, but it also increasingly applies to the remaining group of enterprises since the Internet provides a showcase for these. It can be especially important to own a matching domain name if it is a primary trademark rather than a secondary trademark since it will often be this name which will be used as a search criterion on the Internet by the consumer.

How would you evaluate the position of your trademark in relation to obtaining a domain name?

1 point: I cannot get my domain name
...
8 points: I hold my domain name OR a domain name is not relevant


In your opinion, which measures can be taken in your specific situation to improve this score?

See possible surgestions here

Below please state your thoughts, discussions, background, reservations etc. which have influenced the rating so that others can gain insight into the factors contributing to the value of the trademark.

Registration of a domain name

When domain names are concerned, there is only room for one unique name for which reason, basically, a first-come, first-served basis applies to the registration of domain names. However, the domain name must be registered in good faith and the domain name must also be in actual use. Accordingly, it will be relevant for you to check whether it is possible to register a matching domain name in relation to your trademark.

Toplevel domain name?

You should be aware that you can register the matching domain name as ?.dk?, ?.com? or another toplevel domain name, which, now according to the new rules for toplevel domain names, can be identical with your trademark. This may be important to you, if you are selling or wish to sell your goods/services internationally or wish to use your trademark more actively in connection with your choice of domain name.

5. How good is the brand awareness of the target group?

First you should define your trademark target group - including a potential future target group if you have plans to expand the production or the like. This target group must correspond with the target group you have defined in your marketing strategy.

How would you evaluate the awareness of the group?

1 point: The brand awareness is very low
...
8 points: The brand awareness is very high (95 % or more)


In your opinion, which measures can be taken in your specific situation to improve this score?

See possible surgestions here

Below please state your thoughts, discussions, background, reservations etc. which have influenced the rating so that others can gain insight into the factors contributing to the value of the trademark.

Example of target group:

You are publishing the magazine "Older ones". The magazine contains everything from recipes to patterns for the grandchildren. In this case you are undoubtedly adressing women 50+ and since the magazine is Danish, the target group will thus be women 50+ reading Danish.

6. Is the awareness of the target group positive or negative?

The value of the trademark is both influenced by the level of awareness and the sign of this awareness - is it preceded by a minus sign or plus sign?

Neither positive nor negative brand awareness is related to the quality of your company's products since this may be expected to affect the price of the product so the consumer feels that he gets what he pays for.

How do you evaluate the brand awareness?

If the preceding sign for the brand awareness is neither positive or negative, your trademark should be given the score 4.

1 point: The brand awareness is very negative
...
8 points: The brand awareness is very positive


In your opinion, which measures can be taken in your specific situation to improve this score?

See possible surgestions here

Below please state your thoughts, discussions, background, reservations etc. which have influenced the rating so that others can gain insight into the factors contributing to the value of the trademark.

Examples of posive or negative brand:

Positive brand awareness can be obtained by, e.g. pursuing an active CSR policy, an environmentally correct policy, or if your company is known for doing other good things for society.

Negative brand awareness, on the other hand, may be caused by child labour, tax fraud cases, products which mav be harzardous to the health of consumers etc.

7. How large is your market share?

Maybe you already know the market, however, in order to be able to work with the latest and most up-to-date data, you should conduct an up-to-date analysis of this.

How would you evaluate your market share?

1 point: My market share is very small
...
8 points: My market share is very large


In your opinion, which measures can be taken in your specific situation to improve this score?

See possible surgestions here

Below please state your thoughts, discussions, background, reservations etc. which have influenced the rating so that others can gain insight into the factors contributing to the value of the trademark.

8. How strong is the growth on the market?

Go through the expected growth on the market. If the trademark covers more markets, you should make a calculation of the growth average based on the importance of the individual market. The market growth indicates the future trademark value.

How would you then evaluate the growth on your market/markets?

1 point: The growth on the market is very low
...
8 points: The growth on the market is very high


In your opinion, which measures can be taken in your specific situation to improve this score?

See possible surgestions here

Below please state your thoughts, discussions, background, reservations etc. which have influenced the rating so that others can gain insight into the factors contributing to the value of the trademark.

9. How many years do you expect to use the trademark?

Trademarks are renewable for successive periods of 10 years. Thus, the life span of the trademark protection is in principle infinite and, similarly, the life span of marks put into use will also be infinite, but still dependent on a continuous use

The economic life span of the trademark, i.e. the number of years in which the right can be used commercially may be time-limited since it will depend on how long the actual product or service is saleable on the market. Therefore you should define the expected remaining life span of the trademark which will be equivalent to the remaining economic life span.

In case the products and services offered for sale by you are in their late life cycle you should consider whether the trademark has an unrealized potential which can prolong its life span. It may, e.g. consist of new products under the old trademark.

Whether a certain number of years is a short or a long time depends of the markets served by you.

How will you evaluate the life span of your trademark?

1 point: The trademark has a very short life span
...
8 points: The trademark has a very long life span


In your opinion, which measures can be taken in your specific situation to improve this score?

See possible surgestions here

Below please state your thoughts, discussions, background, reservations etc. which have influenced the rating so that others can gain insight into the factors contributing to the value of the trademark.

Example of economic life span:

The economic life span mainly depends on supply and demand. If the products offered for sale by you under your trademark have a limited life span, e.g. due to rapidly changing consumer preferences within this field, likewise it will only be interesting for you to maintain your trademark in the time period where it is economically worthwhile to continue paying renewal fees and maintain marketing costs related to the trademark.

New products/services under an old trademark:

You should be aware that a relaunch of your trademark may require a new trademark application, if you modify or completely change your logo or your name. You can relaunch the actual product/service or launch new products/services under the same mark without any problems, provided always that the products/services are already comprised by the registration; otherwise a new application may be required.

10. How distinctive is your trademark?

The longer the trademark, the more the consumer must relate to the trademark and remember it and, thus, there is an increased risk that your trademark is disregarded, or worse that your trademark is confused with that of other suppliers on the market. It may also be significant if the trademark only consists of one or more words or of a figure or a combination of words or figures. Often the consumers will find it easier to remember short distinctive trademarks perhaps in combination with a figure since such figure will often be instantly identifiable with a potential buyer.

When your trademark scores points below, you should only evaluate the trademark on the basis of the above criteria for distinctiveness and not on the market perception of the trademark. You can read more about distinctiveness to the right.

How would you evaluate the degree of distinctiveness of your trademark?

1 point: My trademark is barely distinctive
...
8 points: My trademark has a high degree of distinctiveness


In your opinion, which measures can be taken in your specific situation to improve this score?

See possible surgestions here


Below please state your thoughts, discussions, background, reservations etc. which have influenced the rating so that others can gain insight into the factors contributing to the value of the trademark.

A trademark is a characteristic of your company

The most essential quality of a trademark is to function as a distinctive sign for the products or services which are sold under the mark. Thus, a consumer should be able to distinguish the goods/services of your company from those of another company by means of your trademark. Accordingly, it is not unimportant which elements form part of the trademark.

What makes a trademark distinctive?

Everyday consumers are confronted with many different trademarks, and the choice of a trademark can be vital in determining whether the consumers recognize your trademark next. For you to register and thus protect your trademark, the trademark must be distinctive, meaning that your trademark must be both capable of differentiating your goods/services from those of your competitors, and your trademark must not only be descriptive of your goods/services. Traditionally, a trademark can consist of one or more fantasy words or commonly known words as well as figures. Likewise, a trademark can consist of figures/logos both with and without words.

The degree of distinction may thus vary according to how you choose to design your trademark, and thus the strength may also vary. A trademark consisting of fantasy words will typically be stronger and more distinctive than a trademark consisting of well-known and often used words within a given business or words/combinations of words suggesting the actual product or service. As a main rule, a not very distinctive mark must often tolerate that third parties' trademarks "are closer" than a very distinctive trademark.

Example of a strong trademark

HARIBO and Marabou are registered trademarks for various kinds of sweets and confectionary. The trademarks are fantasy words since they do not have individual meanings. The trademarks gain additional strength and distinctiveness since they do not suggest anything to the consumers which relates to sweets and confectionary. This would have been the case if the trademarks, e.g. had consisted of words or elements of words such as "sweets or "choco" which are typically used words within that business and at the same time suggest the product purchased by the consumer.

Examples of weak trademarks

For businesses it will often be obvious to use words or elements of words that to some extent are close to the product or service which are requested sold under the trademark. Certain words are therefore likely to recur in many trademarks without necessarily being identical trademarks or trademarks for the same goods or services. By way of example, "flex" is frequently used either alone or in connection with other words, and "star" is also a very frequently used word. As owner of a trademark containing such frequently used words, you must tolerate that many others have trademarks containing similar words. This is a contributory factor in making the mark weaker and less distinctive than the pure fantasy words, because there are more of these on the market.

Example of weak figurative marks

Also in the case of figures, it is relevant to mention weak and strong figurative elements. Natural symbols like, e.g. meadows, fields and cows for the product "milk" and bees for the product "honey" and simple geometric figures like circles, triangles and squares will typically be in a weaker position than the imaginative and distinctively shaped trademarks.

Rapport

Warning

You have chosen to maintain the score 1 for one or more questions.

You should consider whether the specific factor is so critical that your trademark looses its value. The case might be, e.g. that you cannot register your mark in the relevant countries because there are other suppliers on the market selling goods under a similar trademark. In some cases you will be able to increase the value by striving to mitigate potential risks. One possibility for mitigating risks is to make further investigations related to the possibility of acquiring foothold for your products in the market in all the relevant countries by, e.g. entering into a cooperative relationship with another business, or buying a licence to establish your products in the market. You are the only one who can estimate the possibilities for mitigating the risks of your trademark.

Factors which are given the score 1:

Do you find one or more of these factors so critical that they devalue your trademark?

State the reason for your selection

Du har angivet 8