When you see the golden arches what do you think of? Obviously the McDonalds brand! But what do you think about first: is it the delicious BigMac, or maybe the “Ba Da Ba Ba Bah, I’m Lovin’ it” slogan being advertised on your TV, or maybe it brings you back to your childhood with your favorite Happy Meal? You get the point, the list could go on and on, but the McDonald’s brand doesn’t just have you thinking of their irresistible BigMac or McNugget’s but of their whole brand: their social media and advertising presence, the color and look of their restaurants, the sound of their catchy jingle, the red container that holds their crispy fries, Ronald McDonald, or even the infamous Red and Yellow striped roof.
Thus, a company’s brand value is simply the financial worth of that brand, which incorporates the value of the company’s products, services, reputation, and logo.
Brand value is so important because good branding, like McDonald’s, increases the value of the company, so much so that McDonald’s brand is worth over $43 million. But how can an intangible asset, like a brand, increase the value of a company? GOODWILL!
Goodwill is an intangible asset of the company that is a portion of the purchase price when one company is merging or purchasing another. The value of the company’s goodwill can be calculated by customer base and loyalty, employee satisfaction, brand reputation, brand name, or company strategies. Goodwill cannot be independently sold, purchased, or transferred from the business. More simply put, goodwill refers to the value of the intangible asset of the trademark.
Why Should you Care about Your Companies Goodwill?
The goodwill that is associated with your company’s trademark has an impact on almost all areas of your business. The stronger your company’s goodwill is the more opportunities that you will have for licensing your brand and assisting your brand in litigation efforts. Even more importantly, the goodwill of your trademark helps determine the type of enforcement that the courts will use when dealing with trademark infringement.
How Do I Control My Brand’s Goodwill?
First, to simply establish goodwill you should develop a trademark that is suggestive, arbitrary, or fanciful. Rachel and her team at Eden Law have the knowledge and experience to help business owners establish a strong mark. One of the many services that Eden Law offers is Name Advisement which is an evaluation and discussion concerning your business or product name. Let us help you develop a trademark that is not already being used in that particular market, not only establishing goodwill but also increasing it.
Next, you need to register your trademark. For years, Rachel has been protecting small businesses through proper word and design mark applications.
Lastly, you must protect your trademark. Trademark owners have to police their trademark and stop any type of infringement that might be taking place. Protecting your trademark not only maintains your goodwill but promotes and encourages future goodwill. Eden Law offers a service that uses a team of legal professionals to police your trademark so that you can continue developing your brand while we respond and stop trademark infringement.
Your brand’s goodwill is too important to not continually develop, protect, and improve.
Let us take care of your legal needs. Headquartered in Fredericksburg, VA – Serving nationwide. Get a free evaluation now.