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BRIntangible Assets Explained Simply:
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Intangible assets are non-physical assets (you can’t touch them) that create an economic benefit for an entity.
Here are 7 key types and their examples:
1. TRADEMARKS
Definition: Symbols, names, or slogans used to identify goods or services.
Example: Amazon’s logo or Nike's “Just Do It” slogan.
2. PATENTS
Definition: Exclusive rights to make, use, or sell an invention.
Example: A pharmaceutical company's exclusive right to produce & sell a drug.
3. COPYRIGHTS
Definition: Protection of artistic or literary works.
Example: The rights to the Harry Potter series or The Beatles music.
4. GOODWILL
Definition: Excess of the purchase price over the fair value of net identifiable assets of a business in an acquisition.
Example: Microsoft acquired Activision Blizzard for $69 Billion. Activision’s net asset value was $18 billion. Microsoft added $51 Billion of Goodwill to its balance sheet.
5. FRANCHISES
Definition: Authorization granted to carry out specified commercial activities.
Example: The right to own & operate a McDonald's or Subway.
6. CUSTOMER LISTS
Definition: Information about marketing & selling to a group of customers.
Example: Microsoft’s list of clients.
7. LICENSES
Definition: Permission to perform activities or produce items, typically granted by a government.
Example: A radio broadcasting license.
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