Brand Management and Trademark Pooling

We not only keep it all in shape.

In times of agency-pooling and lots of special services control of brands is growing in their complexity. In addition, fluctuations in the company impair the continuity of the brand.

Even a ‘simple’ corporate brand control is not trivial – depending on the fluctuation in the fields of communication and marketing or new media channels and target definitions it may happen to get breaks in brand management though.

While in previous times lead-agencies were supposed to be a model for a stable brand, times have changed and brand management is getting more difficult.

Luenstroth Brand Consultancy counts on continous change of a brand with a stable brand core. The external view allows brand consultants to define the border between habit and necessary change.

Brand Management: Support

Trademark Pooling

Digital corporations are known for clever patent pooling. Intangible assets are managed in tax-efficient locations; the license fees are then charged to the national companies.

This procedure lowers the tax burden of the national companies (and the holding company); gains are taxed at the low tax rate of the management company in the tax-privileged country.

The same model is also used by international companies from the analogue world; that is not so well known.

 

In the meantime, the tax authorities in the high-tax countries have responded – a complex monitoring of companies’ transfer pricing policies significantly limits the possibilities.

The overarching principle is that recognized internationally in tax law: If it serves to avoid tax, the models are illegal; if they make economic sense without tax advantages, they are legal.

Luenstroth has responded to this legislation and develops brand models that make economic sense, but which may take into account tax benefits in their design.

The result isn’t tax avoidance, but a cost-neutral optimization of the brand architecture – costs of a more profitable brand model are offset by the tax benefits.

This construction requires holistic thinking. Not only the legal framework conditions in the various countries must be taken into account, but also the tax specifications and the brand architecture of the entire company.

These advantages are not only evident for big players (as they have been by now), but also for medium-sized companies with worldwide export markets. (In many cases, companies do not even post their brands – this is not a problem as long as they are family-owned companies, but in the case of publicly traded companies, the board is responsible to the shareholders, unless positive economic optimizations are perceived.)

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