Assessing the Value of a Trademark According to International Standards

A trademark can influence customer choices, support pricing and strengthen loyalty, but how can its impact be measured and, more importantly, how can that impact be translated into financial value?

The international standards ISO 10668:2010 and ISO 20671-1:2021 are complementary.

They provide a common framework for examining trademark performance and estimating its monetary value, including where stakeholders from several countries are working together.

Their scope is international, but their application is not automatically mandatory in every country.

Companies and national bodies may choose to use or adopt them, while local rules continue to apply.

What does ISO 10668 measure?

ISO 10668 concerns the monetary value of a trademark: it provides a framework for estimating the economic benefits attributable to the trademark and expressing them in monetary terms.

Before calculating an amount, the valuer must identify the trademark concerned, the purpose of the valuation and the date as of which the value is determined.

A valuation carried out in preparation for an assignment, for negotiating a licence or to support a strategic decision will not necessarily address the same question.

The analysis takes three dimensions into account:

• Legal: the rights protecting the trademark, who holds them and their scope.
• Behavioural: the trademark’s influence on customers and other stakeholders.
• Financial: the economic benefits the trademark may generate.

Depending on the context and the data available, the valuer may use an approach based on future income, comparable transactions or the cost required to create or replace a trademark of comparable utility.

What does ISO 20671-1 contribute?

ISO 20671-1:2021 addresses trademark evaluation in a broader sense.

It establishes principles and a framework for examining the factors that contribute to trademark performance, as well as dimensions and indicators through which they can be assessed.

This approach is not limited to producing a monetary figure. It also helps to understand a trademark’s strengths and weaknesses, monitor its development over time and support management decisions.

How do the two standards complement each other?

ISO 20671-1 helps to understand what contributes to a trademark’s performance, while ISO 10668 helps to estimate the monetary value that may be attributed to it.

For example, an analysis of trademark perception, its position in the market and its influence on customers may inform the assumptions used in a financial valuation.

The two frameworks can therefore be used as part of the same analysis, depending on the objective pursued.

Their respective outputs should nevertheless be distinguished: an indicator of trademark awareness or loyalty does not, in itself, constitute a value expressed in euros. Conversely, a monetary figure alone does not explain all the factors underlying a trademark’s performance.

Which editions are currently in force?

As of September 2026, ISO 10668:2010 remains the current published edition. Confirmed in 2023, it is currently undergoing revision with a view to preparing a second edition.

This draft revision has not yet replaced the 2010 standard.

Similarly, ISO 20671-1:2021 is the current published edition covering the principles and fundamentals of trademark evaluation. It replaced ISO 20671:2019, which has since been withdrawn.

These dates are important when citing a standard in a report, commercial proposal or article, as they make it possible to identify precisely the text being referred to.

Conclusion: A practical tool for entrepreneurs and investors

For entrepreneurs, the evaluation can help measure a trademark’s contribution, guide investment decisions and prepare discussions with partners or investors.

For investors, it can provide insight into a trademark’s revenue potential and associated risks, particularly regarding the protection of rights, reputation and the reliability of financial forecasts.

In certain sectors, a trademark may generate returns exceeding those of some tangible assets. Valuation makes it possible to assess this possibility on the basis of substantiated data.

A trademark whose rights, scope and value are properly documented can then form part of a contractual arrangement, such as a licence, assignment or partnership.

The estimated value provides a basis for negotiation without, in itself, determining the price ultimately agreed between the parties.

Sources: ISO 10668:2010 · ISO 10668 revision project · ISO 20671-1:2021 · WIPO on IP valuation · ISO on voluntary standards

Franck SOUTOUL – Founder & Partner