According to the Russian civil law, trademarks and service marks are means of differentiation and individualization of products (services) aimed at distinguishing
between goods and services provided by particular legal entities or individuals from similar goods and services provided by other legal entities or individuals.
A trademark (servicemark) can be an original image, text, logo, shape or form and the rights to use it are protected by law.
Trademarks and servicemarks are very similar in nature – they are designed to make products more recognizable and to help consumers quickly distinguish some
products from the others. The only major difference between a trademark and a servicemark is that trademark serves for individualization of goods, while servicemark – for individualization of services.
In Russia any legal entity or private individual can register a trademark or servicemark provided that this mark is unique, i.e. does not repeat and does not copy
existing registered marks. After the registration procedure, the authorized government body - Federal Service for Intellectual Property (ROSPATENT) - issues a Certificate of Registration
for Trademark (Servicemark), which confirms the exclusive right of the holder to use the mark for the certain classes of goods or services specified in the Certificate.
Russian Certificate of Registration for Trademark (Servicemark) is issued for 10 years and can be prolonged (for a fee) unlimited number of times by 10 more years at a time.
State legal protection for registered mark works as long as Certificate of Registration remains valid.
Valuation of a registered brand name, trademark or servicemark is a professional assessment of value of the exclusive right
(see definition of the exclusive right in Russia) to the subject mark under current market conditions.
Exclusive right to an object of intellectual property is similar to an ownership right to a material property – is gives the right holder maximal possible control over his
intellectual property under prevailing law.
The exclusive right holder may transfer non-exclusive rights to use his intellectual property (trademark or service mark) under a license agreement. The set of rights which licensee
gets under license agreement depends on the specific conditions of a particular license agreement, but it always have some limitations which make this set of rights different from an exclusive right.
Valuation of non-exclusive rights to use a trademark (service mark) is often referred to as trademark (service mark) license valuation and the main purpose of license valuation is to
get an independent professional opinion on fair amount of royalty for the use of trademark (service mark) under particular license agreement and existing market conditions.
Since non-exclusive rights transferred under license agreement are always limited in comparison with the exclusive right, the license value is always less than the value of the exclusive
right to a trademark or servicemark under the same market conditions.
Valuation of brand, trademark or service mark is based on an analysis of the company’s complete business cycle from manufacturing to sales and is aimed to determine the fair market value of the
subject mark through assessment of its contribution to the company’s profits and/or sales volume.
Our firm has been doing valuation of trademarks (servicemarks) and trademark (servicemark) licenses for more than 20 years now. We have experience in valuing trademarks in various
industries and have gained extensive knowledge of value-moving factors in such industries as pharmaceuticals, food processing, aircraft manufacturing, textile industry, mechanical
engineering, high-tech industry and publishing.
According to our practice, an independent valuation of brand name or trademark in Russia is often required in the following situations:
For a detailed consultation on valuation procedure of brand name, trademark or service mark in Russia, please contact us.
For valuation of trademark (service mark), the following documents and information generally are required:
For valuation of trademark (service mark) license, the following documents and information generally are required:
Depending on the purpose of valuation and other factors, the above list of information and documents may be reduced or expanded after our review of the valuation assignment.