There are compelling business reasons…why companies and their management teams are obliged (personally, collectively, collaboratively)to…
- safeguard how, why, when, and where their intangible assets are being applied, and monitor the assets contributory role, value, and risk.
These responsibilities are especially necessary…for (business) transactions and/or initiatives in which key intangibles will (always) be in play! https://kpstrat.com/wp-admin/post.php?post=3689
Nine specific, encompassing, and essential reasons for safeguarding key intangible assets are…
1. It’s an economic fact today that…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.
2. Conventional intellectual properties are merely 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, revenue generation, or sustainability.
3. 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, represents a contributory role limited primarily by an assets’ respective life, value, materiality, and functionality cycle.
4. The stewardship, oversight, and utilization of company’s intangible assets and intellectual properties have traditionally-conventionally been framed as legal and accounting decisions and processes, but now warrant reframing as strategic (collective, collaborative) business decisions involving management teams.
6. The life, value, materiality, and functionality cycles of key intangible assets can fluctuate, in 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.
6. 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, collectively mandate business operation transparencies that often produce unintended (open source) vulnerabilities and asset risks.
7. 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.
8. Global, independent and/or state-sponsored data mining and business intelligence operations elevate asset risk and compromise through their aggressively predatorial networks (some, economically and culturally embedded) to rapidly undermine and counter legitimate companies’ strategic planning and competitive advantages at their earliest stages of development and/or execution.
9. Assessing the contributory role, value, and performance of any business intangible asset 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.)
Michael D. Moberly September 20, 2017 [email protected] St. Louis the ‘Business Intangible Asset Blog’ since May 2006, 650+ published blog posts where one’s attention span, intangible assets, and solutions converge!
Readers are invited to explore other relevant posts, video, books, and position papers at this site (above).