Michael D. Moberly September 20, 2017 email@example.com ‘A business intangible asset blog where attention span really matters’!
There is indeed, compelling business rationale and returns-on-investment about why companies and their management teams should (personally, collectively) assume responsibility for the development, control, use, ownership, and safeguards related to monitoring value, materiality, and risk to their intangible assets, particularly in transactions in which intangibles will always be in play.
First, today, 80+% of most company’s value, sources of revenue, competitiveness, wealth creation potential, brand, reputation, and sustainability lie in – emerge directly from intangible assets. This is economic fact.
Second, conventional intellectual properties are collectively, one type-category of intangible asset, i.e., a patent, copyright, trademark, or trade secret, however, neither…
• are synonymous with sustaining control, use, ownership, and value of other types-categories of intangible assets.
• are standalone deterrents or safe harbors to misappropriation, infringement, or devaluation.
• represent or provide consistency insofar as predictability of asset value, sustainability, and/or control any longer.
Third, intellectual properties and other forms of intangible assets are variously perishable and non-renewable, that is…
• once compromised, competitive advantages and asset values can seldom be fully recovered.
• each asset alone, or in combinations, produces a contributory role limited primarily by its respective life, value, materiality, and functionality cycle, safeguards and risk mitigation in place
Fourth, the stewardship, oversight, and utilization of company’s intangible assets and intellectual properties have traditionally been framed as legal and accounting decisions/processes, but now warrant reframing as strategic (business) decision making and thoroughly involve management teams.
Fifth, the life, value, materiality, and functionality cycles of specific intangible assets can fluctuate and/or compress, in no small part due to…
• lower barriers – greater efficiencies for achieving legitimate and competitive market entry.
• significant and rapid profits, and market space achieved by globally interconnected and large-scale asset misappropriation, infringement, and product counterfeiting operations that embed in legitimate supply and distribution chains.
Sixth, the growing universality of regulatory mandates for reporting the value, materiality, and financial performance of intangible assets, i.e., the international equivalents to the Sarbanes-Oxley Act, Financial Accounting Standards Board Statements, and Stone v. Ritter which collectively mandate various business operation transparencies that often produced unintended (open source) vulnerabilities and asset risks.
Seventh, the value and competitive advantages created by knowledge-know how-based assets, i.e., intangibles and intellectual properties are increasingly fragile, challengeable, and at risk. When these assets are compromised, economic, competitive advantage, and market space hemorrhaging can commence at irreversible keystroke speed.
Eighth, targeted and global (independent, state-sponsored) data mining and business intelligence operations contribute to asset risk and compromise through aggressively predatorial global networks (economically and culturally embedded) which analyze open source data to rapidly undermine and counter any companies’ strategic planning and competitive advantages at their earliest stages of development and/or execution.
Ninth, assessing the contributory role, value, and performance of any businesses intangible assets should be about determining – distinguishing…
• relevant methodologies for asset measurement that synchronize with accounting and legal.
• which assets to measure.
• which assets possess proprietary elements and competitive advantages, and
• the inter-connectedness of the assets.
…the person who elects not to read has little or no advantage over the person who cannot read! (Variously attributed to Samuel Clemens, adapted by Michael D. Moberly.)