TABLE OF CONTENTS Our language has much to blame for our lack of progress in the management and valuation of intangible costs. Current understandings of the word intangible define intangibles as being (1) nonmaterial and (2) hard to describe. It is because intangibles are perceived that they escape physical definition. Intangibles do not possess material qualities and are difficult to define or describe in physical terms. Conventional theory also states that intangibles are unquantifiable assets or qualities (such as trust, duty, honor, respect, etc.).
Because intangibles create perceptions and perceptions cannot be readily transferred between parties, it stands that intangibles cannot be possessed in the same way as we would possess a tangible object. For example, you can possess a chair, but the perception of that chair is unique to each person. If you tried to own that perception, you would have great difficulty in (1) transferring your exact perception to others, (2) owning other people's perceptions, (3) enforcing your right of "ownership" in other people's perceptions, and (4) proving and claiming legal damages for any infringement of ownership rights in (3). Despite these problems, intellectual property law was created to assist people in enforcing intangible rights on others. Trademarks, patents, designs, copyrights, or other forms of intellectual property have been given legislated protection (the government passed acts). To recover damages from infringed intellectual property rights, it became essential to be able to value intellectual property. As the value of intangible assets became known, the...
