Copyright

Examples of Copyright in the following topics:

• Copyrights

  • Copyright Office.
  • If the business developed the work in question, the value of the copyright is equal to the cost the business incurred securing the copyright.
  • Since a copyright eventually terminates, it is amortized.
  • This means that the book value of the copyright is divided by the useful life of the copyright to determine the amortization amount.
  • This continues until the value of the copyright equals zero.

• Reporting Intangibles

  • The most common types of intangibles are patents, copyrights, franchises or licenses, trademarks or trade names, and goodwill.
  • The costs of acquiring and defending a copyright may be capitalized, but the research and development costs involved must be expensed as incurred.
  • Generally, the useful life of the copyright is less than its legal life.
  • The costs of the copyright should be allocated to the years in which the benefits are expected to be received.

• Limited-Life Impairment

  • The two primary forms of intangibles are legal intangibles, which includes trade secrets, copyrights, patents, and trademarks (also referred to as Intellectual Property) and competitive intangibles, which includes knowledge activities, collaboration activities, leverage activities, and structural activities.
  • Limited-life intangibles are intangible assets with a limited useful life, such as copyrights, patents and trademarks
  • Examples of intangible assets with a limited-life include copyrights and patents.

• Valuation of Intangible Assets

  • Valuation models can be used to value intangible assets such as patents, copyrights, software, trade secrets, and customer relationships.
  • Intangible assets generally arise from two sources: (1) exclusive privileges granted by governmental authority or by legal contract, such as patents, copyrights, franchises, trademarks and trade names; and (2) superior entrepreneurial capacity or management know-how and customer loyalty , which is called goodwill.
  • The valuation of intangible assets with identifiable useful lives such as patents, trademarks, and copyrights are initially valued at acquisition costs.

• Analyzing Intangible Assets

  • Examples of intangible assets with identifiable useful lives include copyrights and patents.
  • R&D activities frequently result in the development of something that is patented or copyrighted (such as a new product, process, idea, formula, composition, or literary work).

• Indefinite-Life Impairment

  • Intangible assets with identifiable useful lives (limited-life) include copyrights and patents.
  • They include trade secrets, copyrights, patents, and trademarks.

• Types of Long-Lived Assets

  • Examples of intangible assets are copyrights, trademarks, patents and computer programs, financial assets-- including such items as accounts receivable, bonds and stocks-- and goodwill.

• Additional Factors to Consider

  • For example: the company's relative size compared with other businesses in its industry, relative product or service quality, product or service differentiation from others in the industry, market strengths, market size and share, competitiveness within its industry in terms of price and reputation, and copyright or patent protection.
  • The company's relative size compared with other businesses in its industry, relative product or service quality, product or service differentiation from others in the industry, market strengths, market size and share, competitiveness within its industry in terms of price and reputation, and copyright or patent protection of its products are all important in this examination.

• Characteristics of Intangible Assets

  • Legal intangibles are also known as intellectual property, and include trade secrets, copyrights, patents, and trademarks.