Trademark Families: Characteristics and Market Values

Abstract

Research has shown that financial markets value trademarks. However, most firms’ trade-mark portfolios are not loose agglomerations of intellectual property (IP) rights. Often, a firm’s trademarks can be decomposed into groups of related trademarks (trademark families). This study identifies different types of trademark families and analyzes their respective effects on the market values of large, publicly listed firms. The results show that financial markets value only those trademarks that develop existing brands, while they do not value the creation of new trademarks. The implications of the results for corporate IP and brand management are discussed.

Keywords: trademarks, trademark families, firm valuation, Tobin’s q, brand management

JEL Classification: M31, O34, G10