The Value of Trademarks: A Study of the Trademark (Protection) Lifecycle in the U.S. Pharmaceutical Industry
50 Pages Posted: 12 Feb 2019
Date Written: February 1, 2019
In this work, I study the determinants of (implicit) trademark value. My approach is based on the idea that more valuable marks are likely to remain under legal protection, as long as the benefits of this protection exceed its costs, than less valuable marks. In order to test this idea, I particularly focus on trademark characteristics that are related to the underlying brand as well as on legally stipulated characteristics. My theoretical predictions are verified by looking at trademark activities in the U.S. pharmaceutical industry, largely owing to its heavy reliance on product differentiation to compete in the market. The statistical analysis I conduct suggests that trademark characteristics are an important predictor of whether the mark is going to progress further along its lifecycle or not, thereby also conveying information about its value. However, assigning the value interpretation to each characteristic should also account for the stage of the trademark lifecycle (that is, registration, maintenance, or renewal) under consideration.
Keywords: trademarks, trademark lifecycle, value indicators, pharmaceutical industry
JEL Classification: O34, L65, C25
Suggested Citation: Suggested Citation