Sale and leaseback – a model for increasing trust in IP assets?

By Stephen Robertson

Placing a tangible financial value on a brand and then leveraging that value remains a frustratingly opaque process. However, the creation of secondary markets to sell IP assets has encouraged lenders to look more closely at this asset class

The power and value of a brand are rarely contested; in fact, brands are often considered to be a business’s most valuable IP asset. However, a brand’s financial value is often hard to quantify – the process of providing a brand with a tangible financial value and then leveraging that value remains frustratingly opaque. Under internationally recognised accounting rules, a company cannot value its own internally generated brand and capitalise it on its own balance sheet. The only way to put a brand on a balance sheet and have its value recognised is through a transaction; in other words, through selling the brand from the trading business that owns and uses it (TradeCo) to a separate company, such as a holding company or special purpose vehicle (SPV). TradeCo can then license back use of the IP assets it has just sold from the SPV, as in a traditional sale and leaseback arrangement.

Want to read more?

Register to access two of our subscriber only articles per month

Subscribe for unlimited access to articles, in-depth analysis and research from the World Trademark Review experts

Already registered? Log in

What our customers are saying

World Trademark Review is one of my favourite conference organisers. The topics and themes are always relevant, on point and designed to give me practical information about real-time industry issues. I look forward to all of the World Trademark Review events and highly recommend them to my industry colleagues.

Jennifer Chung
Assistant general counsel
Time Inc


Subscribe to World Trademark Review to receive access to the full range of trademark intelligence, insight, and case law, as well as our guides, rankings and daily market insight delivered to your inbox.

Why subscribe?


Register for more free content

  • Read more World Trademark Review blogs and articles
  • Receive the editor's weekly review by email
Register now  
Issue 74