Identification of Intangible Assets

This chapter discusses the definition of an intangible asset, the distinction between tangible assets and intangible assets, the distinction between real estate and tangible personal property, the distinction between real property interests and intangible personal property, common categories of intangible assets, and the distinction between intangible assets and intellectual property. It introduces the characteristics that are relevant for determining what economic phenomena qualify as intangible assets and what economic phenomena do not qualify as intangible assets. The chapter also introduces the factors that contribute to a positive intangible asset value. It explores some of the many attributes that distinguish intellectual property from general commercial intangible assets. The first intangible personal property asset category includes financial assets. All business observers are familiar with financial assets. The chapter focuses on defining the questions that are relevant to these intangible asset analyses: a valuation, a lost profits damages measurement, and a transfer price or royalty rate estimation.