Intellectual property valuation is a complex and often perplexing task, particularly when valuing intangibles whose value creation is highly interdependent with that of other value factors. Brands are typical examples of such intangibles, and must be analyzed in the context of the firm’s value creation process. While standard approaches to brand valuation can be reasonable when non-brand value elements can be unambiguously identified, the pool of residual profits may include a wide variety of value elements that are not separable from the firm and go beyond the brand. In this article from International Tax Review's Intellectual Property Supplement, NERA Special Consultant Dr. Alexander Voegele and Richard Sedlmayr argue that the empirically oriented willingness to pay approach can be a meaningful alternative to more traditional approaches to brand valuation.

This article first appeard in the sixth edition of International Tax Review’s Intellectual Property supplement, December 2007. For more information, please visit www.internationaltaxreview.com.