why trademark is an intangible asset?

A trademark is considered an intangible asset because it lacks a physical presence. Instead, its value is derived from the goodwill, recognition, and trust it generates for the owner. This makes a trademark a vital asset that significantly impacts brand reputation, customer loyalty, and a business’s competitive edge in the marketplace. Unlike tangible assets, trademarks do not have a set lifespan or physical deterioration, allowing them to retain their value over time, often becoming one of the most valuable aspects of a business.

The value of a trademark can be influenced by various factors, including legal protection, market trends, consumer perceptions, and the strength of the brand’s identity. A trademark’s value can grow as a business becomes more established and its brand becomes more recognizable. Additionally, factors such as intellectual property enforcement, the ability to license or franchise the brand, and its influence on consumer purchasing behavior can further enhance its worth.