INTA needs new definition of ‘brands’, says internal task force
An International Trademark Association (INTA) report has suggested that the organisation revise its own definition of ‘brands’ to better reflect the commercial value generated by intangible assets such as IP.
The report, published yesterday, April 15, is the work of INTA’s Brand Value Special Task Force, established in 2018 to explore the commercial value of intangible assets.
Among its key findings is that INTA’s definition of brands is “problematic for financial and marketing professionals because it does not refer to brands as intangible assets that generate economic benefit or value”.
At present, INTA defines ‘brands’ as the “total identity of a product or service, which a current or prospective consumer relates to and connects with intellectually, psychologically, and/or emotionally”.
But the task force said INTA should consider new definitions of ‘brands’ and ‘brand value’ to emphasise their economic value.
The task force did not settle on one proposed definition of ‘brand value’, but was able to narrow it down to two options developed by the International Organization for Standardization.
The first, written from an accounting perspective, regards brand value as the “total economic value of a brand in transferable monetary units”.
The other, coming from a marketing perspective, instead defines it as the “worth of a brand as an asset for an entity”.
INTA should set up a new committee to consider the issue and suggest interim definitions for the organisation to adopt, the task force suggested.
The task force also envisions INTA as being a resource for different professions during brand valuations.
To this end, INTA should “seek out bridge-building opportunities with accounting, auditing, banking, insurance, and other related associations,” the task force recommended, noting that INTA doesn’t currently engage with any of these groups.
It is especially important for INTA to develop links with organisations that develop certification programmes on IP or brand valuation for those working in the finance industry, the report said.
INTA will hold a combined annual and leadership meeting in Houston this November, following the cancellation of the planned annual meeting in Singapore this month due to coronavirus.
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