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Trademark value indicators: Evidence from the trademark protection lifecycle in the U.S. pharmaceutical industry

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  • Nasirov, Shukhrat

Abstract

This work identifies and studies the determinants of trademark value. In particular, it focuses on trademark characteristics that are related to the underlying brand and on legally stipulated characteristics. To reveal the value implications of the identified trademark characteristics, it follows the idea that more valuable trademarks tend to be protected for a longer period than less valuable trademarks, provided that the benefits of this protection exceed its costs. Thus, those characteristics that have a positive association with the duration of trademark protection should indicate more valuable trademarks. The empirical analysis relies on studying trademark activities in the U.S. pharmaceutical industry, largely owing to its heavy reliance on product differentiation to compete in the market. The results suggest that trademark characteristics are an important predictor of trademark value. At the same time, the value interpretation of some characteristics depends on the stage of the trademark protection lifecycle (that is, registration, maintenance, or renewal) under consideration.

Suggested Citation

  • Nasirov, Shukhrat, 2020. "Trademark value indicators: Evidence from the trademark protection lifecycle in the U.S. pharmaceutical industry," Research Policy, Elsevier, vol. 49(4).
  • Handle: RePEc:eee:respol:v:49:y:2020:i:4:s0048733320300093
    DOI: 10.1016/j.respol.2020.103929
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    3. Po-Hsuan Hsu & Dongmei Li & Qin Li & Siew Hong Teoh & Kevin Tseng, 2022. "Valuation of New Trademarks," Management Science, INFORMS, vol. 68(1), pages 257-279, January.
    4. Chen, I-Ju & Hsu, Po-Hsuan & Wang, Yanzhi, 2022. "Staggered boards and product innovations: Evidence from Massachusetts State Bill HB 5640," Research Policy, Elsevier, vol. 51(4).
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    6. Alexander Cuntz & Franziska Kaiser, 2020. "Batman forever? The economics of overlapping rights," WIPO Economic Research Working Papers 61, World Intellectual Property Organization - Economics and Statistics Division.
    7. Fisch, Christian & Meoli, Michele & Vismara, Silvio & Block, Jörn H., 2022. "The effect of trademark breadth on IPO valuation and post-IPO performance: an empirical investigation of 1510 European IPOs," Journal of Business Venturing, Elsevier, vol. 37(5).

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    More about this item

    Keywords

    Trademarks; Value indicators; Trademark lifecycle; Pharmaceutical industry;
    All these keywords.

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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