Question

Topic: Branding

Dash Trademark Valuation

Posted by Anonymous on 6/25/2011 at 12:27 AM ET 250 Points
I own the trademark DASH for the cosmetics category (003) and am seeking a realistic valuation for the mark. As you may know, the Kardashians have been very successful branding DASH (in the clothing category) and they have tried (but have been denied to date) to trademark Dashing for cosmetics. I have some marketing folks trying to determine a value but feel this is a unique scenerio as it is almost a household name already. Does anyone know of a reputable valuation company that may have dealt with celebrity products or any cosmetic companies like Lighthouse Beauty that could provide a realistic and acceptable valuation. Not only does it have a celebrity appeal, but other companies may be interested in DASH of beauty, DASH of fragrance, etc products. If you are able to come up with a value, please provide supporting documentation
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RESPONSES

  • Posted on 6/25/2011 at 11:20 PM Moderator
    Your trademark is only worth what someone is willing to pay for it. There is no "formula" for computing the intrinsic value of a mark.

    I've been involved in a few projects to value a brand, but it's always been an existing brand, not just a trademark. I'd be leery of any expert who tries to sell you a professional opinion of the value of your trademark in a hypothetical situation or unproven category. The value will be almost entirely in what the owner makes of it, not in the word itself.

    Besides, a trademark is only worth something if you defend it against those who would use it improperly, and then you'd have to prove damages. So if the name is not worth much to begin with, how great could the "damages" possibly be? And if the value is really in the brand (and not just the trademark), then the brand owner (who invested in building the name and making it worth something) would be the one to suffer damages in the case of infringement, not the person who registered the trademark.
  • Posted by SteveByrneMarketing on 6/26/2011 at 2:51 AM Accepted
    I agree with Mr. Goodman.

    Perhaps you could have your counsel contact the Kardashian's counsel and negotiate use of the trademark since they are in a position to make use of the cosmetics category brand extension.

    Steve
  • Posted on 6/26/2011 at 10:10 AM Accepted
    Either you build a brand, which makes the trademark valuable, or you try to create a feeding frenzy with an auction, so that an irrational price is paid.

    One way to increase the "auction fever" is to go out and register a bunch of related domain names. I noticed that www.kardashinas-dash.com and www.kardashinasdash.com are free. Register some other www.WidgitCosmeticCompany-Dash.com names while you are at it. Create some associated websites for each domain name, just a one page landing site with some nice artistic features, maybe as the result of a web-design competition at a local school you organize.

    Get some social media buzz going about the new " Dash Perfumes and Cosmetics" thrilling, dynamic, anti-aging, mega-sex appeal, fountain of youth and beauty, but who is the mysterious company behind it? Is it Kardashina? Is it Widgit Cosmetics? Is it a Hollywood movie star?

    You want to create pent-up demand for a product that does not exist. (Not a new ploy by the way; been done in New York City for decades, bait and switch, etc.)

    If you do the above right, you will be in a whole lot better position to offer an on-line auction for the trademark (+ domain names and websites), which you do not want to sell, but rather to license. That way you have an on-going revenue stream from it.

    Sure, this way is a lot of work, just like building a brand is. That`s what creates value, working!

    Regards,
    JH
    P.S. Be careful about being too quick to go to attorneys to negotiate a marketing deal. They are taught to win in adverserial conflict - "I win, you lose." Creative "win/win" is usually easier with a senior manager, but don't assume friendliness = win/win either. What counts is what kind of creative suggestions are made.
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