How to Differentiate Between the Value of a Brand Vs. the Value of Its Trademark

A brand and a trademark are two different things. The brand value applies to the overall concept marketed to customers, including the company's promise to address a particular need or problem. Brand value is often based on the opinion of accountants, banks and marketing experts, who analyze market research to ascertain the value. The trademark value, however, is a finite value that can be calculated and is based on factual financial reports and projections.


A brand is a “set of expectations …. that account for a consumer’s decision to choose one product or service over another,” according to marketing thought leader Seth Godin. Previously, a brand was considered to be the logo, packaging and other advertising and identifying components of a product, but in the 21st century it also encompasses the product’s positioning in the market, its reputation, price points and length of time in existence.

Brand Value

Experts calculate the value inherent in a brand using a range of different parameters. You can represent the value as a monetary amount, which is commonly based on the market value attributed to the product or service sold under the brand name. This value takes account of the reputation, pricing and other factors and is based on a market valuation of the company or line of products, as well as consumer research. The brand equity is the value of the product or service in the eyes of the consumer, based on the premium they are prepared to pay in comparison with similar products offered by competitors.


A trademark is a symbol, word or words that serve to identify the origin or ownership of a product or service, and which is legally reserved for exclusive use by the owner of the products. A trademark registration applies to very specific uses and a particular geographical location, such as the use of a particular symbol to promote a list of branded product types in certain states or across the country. The marks are allocated according to trademark classes, which limit the extension of the owner’s intellectual property rights to covering its use only in relation to specific goods or services. For example, a company can register a trademark to prevent competitors selling branded clothing with the mark, but this won’t prevent them from selling branded pens, unless those are also specified.

Trademark Value

Trademark value is determined using several different approaches. An income approach identifies the value based on the financial value or future income the sale of products carrying the mark can generate for the owner. This value may include royalties, if these apply. A market approach determines the market value by comparison with competitors, and a cost approach identifies the costs associated with the registration of the trademark and applicable patents.



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