Commercial Value

September 25, 2008 | Commercial Value, Intellectual Property

What exactly is the commercial value of something? Clearly the answer to this depends upon what the item is and what the circumstances are. The commercial value of a lap top computer, for example, will depend upon the make, model and age of the item as well as the circumstances in which the valuation takes place. If the lap top computer is sitting at the bottom of the Indian Ocean in a yacht that went down in a storm, its actual commercial value is zero (unless covered by insurance). It is not just solid objects that have commercial value though. Intellectual property and goodwill must also be considered to have commercial value. The owners of intellectual property frequently take advantage of its commercial value when they allow others to use it in some way. For example, allowing someone to use a brand name belonging to you under license would guarantee you a recurring income from royalties as well as giving the brand name more visibility in the marketplace.