Determining Values of Product and Company Brands in Input Output Framework As Outcomes of Intellectual Property Rights

The globalized Indian economy now conforms to WTO’s laws of protection of intellectual property rights, though the economy faces greatly intensified price and non price competition. Patents make imitation and reverse engineering difficult. IPRs are used for protecting, projecting, propagating and positioning of brand image of companies and their products. Branding facilitates the acquiring and subsequent maintaining of market share, and/or acquisition or retaining of leadership in oligopolistic markets. This paper analyzes and integrates brand positioning and brand valuation, associated with IPRs, in input output framework. This study distinguishes the concepts of product and company brands. Economic Value Added, (EVA) and Residual Value Added, net of pure profits, (RVA) are hypothesized to determine economic value of ‘Product and Company Brands’. Value of both product and company brands vary sharply between sectors, though most sectors show low values of brands. But low values dominate company brand more than the product brand. Value of product brand is a decisive determinant of the value of company/sector brand. Input output table of Indian Economy for 1994 has been used as the data base.