Businesses Are Fiduciarily Obliged To Recognize Their Intangible Assets

Businesses are fiduciarily obliged to ensure they recognize contributory role, value, performance, stability, and risk to key intangible assets, because…

1.  It is an irreversible – universal economic fact…that businesses (small, medium, large, early stage, research-based startups, etc.) are increasingly and consistently intangible asset intensive and dependent, i.e., 80+% of most company’s value, sources of revenue, sustainability, and competitive advantages today, lie in – emerge directly from intangible (non-physical) assets. (Michael D. Moberly)

2.  Intangible assets are…embedded as products of intellectual, structural, relationship capital, and intellectual properties, i.e., patents, trademarks, and trade secrets, etc. If-when intangible assets are recognized, unraveled, contributory role distinguished, effectively developed, converged, and applied, they can manifest as formidable competitive advantages, sources of revenue, and lucrative foundations to reputation, brand, goodwill, and creativity.

3.  Throughout business organization and governance history…there has been no other time when operational familiarity with and application of intangible assets play a more direct role in achieving sources of revenue, competitive advantage, value, and sustaining market position, irrespective of sector, providing management teams have (a.) recognized, acquired, developed, and converged intangible assets in a timely manner, and (b.) practices are in place to consistently distinguish-preserve each assets’ contributory role and mitigate risks.

4.   The prevalence of business leaders to go hard, go fast, go global, go black, time – ability must exist to recognize, distinguish, and capture slight advances in technology, minor improvements in production, and/or small refinements in processes that produce lucrative and sustainable competitive advantages. Christopher R.J. Pace adapted by Michael D. Moberly

5.  The time frames when the most value-competitive advantage can be realized – extracted from intangible assets and intellectual properties continues to be compressed due, in no small part to the aggressive, predatorial, and winner-take-all actions of new market – sector players and the reality that the economics of asset compromise – infringement are more lucrative than origination and are now fully embedded in countries GDP.  (Michael D. Moberly)

6. Business management teams are fiduciarily obliged to recognize…

(a.) that the value, sources of revenue, and competitive advantages produced by intangible assets and intellectual properties are variously perishable, vulnerable, and frequently not readily renewable.

(b.) that, once a targeted intangible asset has been compromised or adverse risks materialize, economic – competitive advantage hemorrhaging will commence rapidly and globally unless-until an organizational resilience (continuity-contingency) plan is operational in advance.

(c.) intangible assets consistently play substantial roles in company’s race to be first in their market space, thus, go fast, go hard, go global, go black may not correspond to the presumptive safeguards of conventional intellectual property enforcements, and

(d.) there is a false sense of competitive sanctuary…if business is viewed solely through a conventional intellectual property lens, rather than a holistic (intangible asset) risk management and asset stewardship lens.

(Adapted by Michael D. Moberly from the fine work of Peter Likins

Michael D. Moberly November 11, 2017 St. Louis [email protected] ‘The Business Intangible Asset Blog ‘ since May 2006, ‘where one’s attention, intangible assets, and solutions converge!’

Readers are invited to explore other blog posts, papers, and books I have published at


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