1. What is a brand and what is truly valued?
2. What is special about brand valuation in Argentina?
3. What is meant by value in the valuation of a brand?
4. What regulations are used to value trademarks in Argentina?
5. What methodologies are used to value brands?
6. What factors influence the value of a brand?
In Argentina, a brand can represent a significant portion of a business's value. It not only identifies products or services but can also sustain reputation, foster loyalty, enable expansion, offer competitive margins, and facilitate licensing. Therefore, in many companies, a substantial part of the value lies not only in physical assets or day-to-day operations, but also in the economic strength of their brand.
From a legal and commercial perspective, what is protected and exploited is not just an isolated name or logo, but a distinctive sign capable of differentiating goods or services in the market. In an appraisal, the aim is not only to measure the registration, but also the full range of economic benefits the brand can generate: differentiation, preference, royalty potential, ability to sustain sales, and competitive strength.
WIPO highlights that the value of an intellectual property asset arises from its future economic benefits, whether from direct exploitation, sale or licensing, or from its ability to raise barriers to entry and reduce substitutes.
Therefore, it's important to distinguish between legal and economic value when dealing with a brand. A brand can be properly registered and yet have little commercial appeal. Conversely, a brand with strong market presence can have its value diminished if it suffers from legal issues related to coverage, enforcement, or consistency.
In Argentina there are several specific points that should be taken into account when valuing a brand.
Registration validity Law 22.362 establishes that a registered trademark lasts for 10 years and can be renewed indefinitely for equal periods, provided it has been used within the five years prior to each expiration. Furthermore, the INPI (National Institute of Industrial Property) requires a sworn statement of use for renewal and a sworn statement of mid-term use after the initial five years. These points are not incidental: they directly affect the legal strength and expected economic life of the asset.
Coverage by class The INPI adopted the Nice Classification, which organizes the system into 34 classes for goods and 11 for services. In practice, this matters because a trademark is not protected in the abstract, but rather with respect to specific goods or services. The consistency between the actual use of the trademark and the protected classes directly impacts its legal strength and, therefore, its value.
Transferability Law 22.362 establishes that the transfer of a registered trademark is valid against third parties once it is registered with the National Directorate of Industrial Property. An asset that can be assigned, licensed, or contributed with clear legal backing is usually more defensible in a transaction.
Accounting recognition IAS 38 states that internally generated trademarks are not recognized as intangible assets. However, in a business combination, a separable intangible asset acquired or one arising from legal rights may be recognized separately from goodwill. In other words, a trademark may have economic value for a negotiation, licensing, or transaction, even if it is not recognized in the accounts if it was internally generated.
Registration validity
Law 22.362 — INPICoverage by class
Nice ClassificationTransferability
DNPIAccounting recognition
NIC 38Valuing a brand is not the same as registering or describing it. It's about estimating, using technical criteria, the economic value of that asset in a given context. And to do that, you first have to define what kind of value you're looking for, because the result can change significantly depending on the purpose of the work.
Fair value IFRS 13 defines it as the price that would be received for selling the brand in an orderly transaction between market participants. It is the most commonly used basis when the valuation has an accounting purpose, such as in a business combination or an allocation of the purchase price.
Market value It is the estimated amount for which the brand would be exchanged between knowledgeable, independent, and non-coerced parties after appropriate marketing. It reflects what the market would pay for that asset under normal conditions.
Investment value It is the value of the brand to a specific owner or buyer, considering their particular objectives, synergies, or advantages. The same brand may be worth more to a company already operating in the same sector than to a generic buyer.
Value in use It measures the brand's economic contribution to the company that operates it, projecting the cash flows it generates and discounting them to present value. It is not based on a hypothetical sale, but on the actual profit of the asset in operation.
In Argentina, there is no specific national standard regulating the methodological process for trademark valuation. In practice, the framework relies on three levels: a local legal framework, an accounting framework, and an international technical framework.
Legal framework Law 22.362 regulates trademarks and designations in Argentina. It establishes the requirements for registration, validity, renewal, transfer, and expiration. The INPI is the agency responsible for the registration and administration of trademarks, patents, and other industrial property rights. The legal strength of the asset, which arises from this framework, is a determining factor in any valuation.
Accounting framework IAS 38 governs the recognition and measurement of intangible assets, including brands. It states that internally generated brands are not recognized as assets, but may be recognized in a business combination. IFRS 13 defines fair value as the measurement benchmark in accounting and financial contexts. IFRS 3 applies to business combinations and the allocation of the purchase price.
Technical framework ISO 10668 is the specific international standard for the monetary valuation of brands. It establishes that all brand valuations must define their purpose, value basis, and methodological approach before applying any method. IVS 210 complements this framework with approaches and methodologies applicable to intangible assets in general, including brands. IVS 100–106 establishes the general requirements for the valuation process.
ISO 10668 and the IVS recognize three main approaches to brand valuation: market, revenue, and cost. In Argentina, the revenue approach is the most commonly used, although the choice always depends on the type of brand, the context, and the available information.
Market focus It seeks to estimate brand value based on comparable transactions or licensing agreements observable in the market. Its main advantage is that it connects the valuation with external evidence. The difficulty is that in Argentina the trademark transaction market is not always transparent, nor does it have sufficient public information to establish reliable comparables.
Income approach It is the most commonly used method in practice. It involves considering the future economic benefits that the brand can generate. The most frequent methodologies are:
Cost approach Estimate how much it would cost to reproduce or replace the brand today, considering development, registration, positioning, and reputation-building costs. This is often useful as a baseline or when there isn't enough information to apply a revenue-based approach.
Market focus
Comparable transactions and observable license agreements.
Income approach
Future economic benefits attributable to the brand. The most commonly used in Argentina.
Cost approach
How much would it cost to reproduce or replace the brand today?.
Most common methodologies — Revenue approach
Royalty savings that the owner obtains by not paying a third party to exploit the brand.
Price difference that the brand allows to be maintained compared to equivalent unbranded products.
Additional cash flow generated by the brand compared to a scenario without it, discounted to present value.
The value of a brand depends not only on the valuation method chosen. It also depends on a set of factors that determine the asset's true strength and its capacity to generate sustainable economic benefits. Based on ISO 10668 and IVS 210, the most relevant factors are:
In practical terms, two brands in the same sector can be worth very different amounts if one has greater recognition, stronger legal standing, or a greater capacity to command higher prices. Value lies not only in the name, but also in the economic strength that name can demonstrate.
Legal strength: Registration coverage, protected classes and validity.
Market recognition: positioning, brand awareness, and consumer preference.
Attributable revenue: portion of sales or margins linked to the brand.
Sustainable price premium: ability to sustain prices higher than unbranded products.
Comparable royalty rate: market reference for similar brands in licensing.
Economic useful life: horizon during which the brand will continue to generate profits.
Discount rate: It reflects the specific risk of the brand and the flow it generates.
Usage/recording consistency: alignment between registered classes and effective commercial use.
Expansion potential: ability to expand into new markets, products or territories.
Documentary evidence: quality and completeness of the support that backs up the appraisal.
A brand valuation depends not only on the chosen method, but also on the quality and completeness of the supporting documentation. The more organized and consistent the documentation, the stronger the report and the more defensible the estimated value will be to partners, investors, auditors, or in legal proceedings.
It is advisable to gather documentation in five key areas:
Let's consider an Argentinian company that markets mass-market consumer products under its own brand with annual sales of USD 5 million. Based on comparable industry benchmarks, an illustrative royalty rate of 31% of the total value of the product is adopted. The annual royalty savings from owning the brand would be USD 150,000.
Under the Relief from Royalty method, these future economic savings serve as the basis for estimating the brand's value. If these savings are projected over 7 years and discounted at a rate of 151% per three years, the estimated present value of the asset would be around USD 620,000.
Case details
USD 5M
Annual sales attributable to the brand
3%
Comparable royalty rate
USD 150K
Annual royalty savings
Logic of the method
The brand is valuable because its owner doesn't need to pay a third party to use it. The projected royalty savings, discounted by the asset's risk, form the economic basis of the valuation.
If you want to know the value of your brand, Anepsa Global can help. Contact us by leaving your information or sending us a message through our social media channels. We're here to advise and guide you through the valuation process.
