LAUSR

Abstract This work identifies and studies the determinants of trademark value. In particular, it focuses on trademark characteristics that are related to the underlying brand and on legally stipulated characteristics. To reveal the value implications of the identified trademark characteristics, it follows the idea that more valuable trademarks tend to be protected for a longer period than less valuable trademarks, provided that the benefits of this protection exceed its costs. Thus, those characteristics that have a positive association with the duration of trademark protection should indicate more valuable trademarks. The empirical analysis relies on studying trademark activities in the U.S. pharmaceutical industry, largely owing to its heavy reliance on product differentiation to compete in the market. The results suggest that trademark characteristics are an important predictor of trademark value. At the same time, the value interpretation of some characteristics depends on the stage of the trademark protection lifecycle (that is, registration, maintenance, or renewal) under consideration.