Criteria for and Categories of Identifiable Intangible Assets
Criteria for Identifiable Intangible Assets
For an identifiable intangible asset to be classified as an asset and be allocated a value, a number of fundamental criteria must be satisfied.
The criteria are that the asset:
- is specifically identifiable and recognisable
- is subject to legal existence and protection
- is subject to the right of private ownership, which is legally transferable
- has tangible evidence of existence
- is created at an identifiable time or as the result of an identifiable event
- is subject to being destroyed or to a termination of existence
- confers a commercial benefit to the owner of the asset.
Categories of Identifiable Intangible Assets
- Marketing-related intangible assets (e.g. trademarks, trade names, brand names, logos).
- Technology-related intangible assets (e.g., process patents, patent applications, technical documentation, such as laboratory notebooks, technical know-how).
- Artistic-related intangible assets (e.g., literary works and copyrights, musical compositions, copyrights, maps, engravings).
- Data processing--related intangible assets (e.g., proprietary computer software, software copyrights, automated databases, integrated circuit masks and masters)
- Engineering-related intangible assets (e.g., industrial design, product patents, trade secrets, engineering drawings and schematics, blueprints, proprietary documentation).
- Customer-related intangible assets (e.g., customer lists , customer contracts, customer relationships, open purchase orders).
- Contract-related intangible assets (e.g., favourable supplier contracts, license agreements, franchise agreements, non-compete agreements).
- Human capital-related intangible assets (e.g., a trained and assembled workforce, employment agreements, union contracts).
- Location-related intangible assets (e.g., leasehold interests, mineral exploitation rights, easements, air rights, water rights).
- Goodwill-related intangible assets (e.g., institutional goodwill, professional practice goodwill, personal goodwill or a professional, celebrity goodwill, general business going-concern value).
The definition of intellectual property varies with the circumstances. To some, intellectual property includes:
- Brandnames & Trademarks
- Broadcast Licences
- Non-compete Agreements
- Registered Designs