One of the primary assets of companies is their intellectual property. However, we can say that even in these modern times there are many companies that do not know what intellectual property is really, so in this article we define it to understand its full scope and the value it represents for companies today. That is why intellectual property is currently recognized as one of the most important intangible assets for companies since it constitutes about 80% of their value.
However, the current value of intellectual property has involved a whole process of evolution and development, thirty years ago said intangible assets were not as valuable, and it was until the beginning of the era of globalization and technological progress that companies decided to expand their horizons, broaden their products and services to new markets, which generated the concern of companies to protect their intellectual property, so that innovative ideas, innovative designs, and brands were protected in accordance with the legislation that applies in each of the countries, with the intention of preventing any other company from using them free of charge, without any limitations, and mainly because with this protection intangible assets acquire a specific value for companies.
Investors, brokers, and financial advisers are increasingly aware that intellectual property is a valuable asset for organizations, and many already include it in their balance sheets and financial statements, even as a result of this analysis. Companies have realized that their intangible intellectual property assets are more valuable than their physical assets, such is the case of well-known brands or companies dedicated to innovative products.
According to the report submitted in September 2013 by the European Commissioner for the Internal Market and Services jointly carried out by the Office for Harmonization in the Internal Market (OHIM) and the European Patent Office (EPO) , the economic benefits of the protection of Intellectual property is not theoretical but has become an extremely important intangible asset for companies. The value of these assets could, in fact, be estimated at 4.7 trillion euros or 39% of the European Gross Domestic Product (GDP).
For all this we can conclude that often organizations do not value their intellectual property adequately, underestimating the possibilities of obtaining future benefits thanks to their use. However, intellectual property can become a valuable asset for companies when it is protected by the law, since through it companies can generate income through licenses or the commercialization of their products or services, and in If a sale, merger or acquisition is likely to increase the value of your company for investors.