The-definition.com

Definition

Trademark /Trade names

A trademark or trade name is a word, phrase, jingle, or symbol that identifies a particular enterprise or product. Trade names like Wheaties, Game Boy, Frappuccino, Kleenex, Windows, Coca-cola, and Jeep create immediate product identification. They also generally enhance the sale of the product. The creator or original user may obtain exclusive legal right to the trademark or trade name by registering it with the U.S. Patent Office. Such registration provides 20 years of protection. The registration may be renewed indefinitely as long as the trademark or trade name is in use.

If a company purchases the trademark or trade name, its cost is the purchase price. If a company develops and maintains the trademark or trade name, any costs related to these activities are expensed as incurred. Because trademarks and trade names have indefinite lives, they are not amortized.

Share it:  Cite

More from this Section

  • Contra asset account
    Accumulated Depreciation- Office Equipment is a contra asset account which is an account ...
  • Cost accounting
    Cost accounting involves the measuring, recording, and reporting of product costs. From ...
  • Sales invoice
    A sales invoice is a business document or a written evidence of the sale that supports ...
  • Ledger Balance
    Ledger Balance is the starting amount mostly in a bank account the following day that ...
  • Amortization
    Amortization means the allocation of the cost of an intangible asset to expense over its ...