Download this Paper Open PDF in Browser

What's a Brand Worth? Trademark Protection, Profits, and Strategy

69 Pages Posted: 21 Jun 2016 Last revised: 21 Oct 2017

Davidson Heath

University of Utah David Eccles School of Business

Chris Mace

University of Utah, David Eccles School of Business

Date Written: October 20, 2017

Abstract

We study the effects of trademark protection on firm profits, value and strategy. Using diff-in-diff and switching estimates around the passage and nullification of the Federal Trademark Dilution Act (FTDA) we find that from 1996 to 2002 the FTDA raised treated firms’ operating margins by 12% and firm values by 9.5% on average. The FTDA’s passage was followed by a spike in trademark lawsuits, lower entry, and higher concentration in more affected industries. Firms granted stronger trademark protection reduced both product quality and innovation, and extended protected brands into all-new product markets.

Suggested Citation

Heath, Davidson and Mace, Chris, What's a Brand Worth? Trademark Protection, Profits, and Strategy (October 20, 2017). Available at SSRN: https://ssrn.com/abstract=2798473

Davidson Heath (Contact Author)

University of Utah David Eccles School of Business ( email )

Salt Lake City, UT 84112
United States

Chris Mace

University of Utah, David Eccles School of Business ( email )

1645 E Campus Center Dr
Salt Lake City, UT 84112-9303
United States

Paper statistics

Downloads
175
Rank
145,227
Abstract Views
619