Intangible assets are non-physical assets that have value due to the rights and privileges they confer to a business. Unlike tangible assets, such as machinery or buildings, intangible assets are not easily quantifiable but can significantly impact a company’s worth.

Characteristics
– Non-physical: They do not have a physical presence, meaning they cannot be touched or seen.
– Long-term value: Intangible assets typically provide value over a long period, often contributing to a company’s competitive advantage.
– Difficult to value: Assessing the worth of intangible assets can be challenging, as their value is often subjective and dependent on market conditions.
– Legal rights: Many intangible assets are protected by legal rights, such as patents, trademarks, and copyrights.

Examples
– Patents: Legal rights granted for inventions, allowing the holder to exclude others from making, using, or selling the invention for a certain period.
– Trademarks: Symbols, names, or slogans that distinguish goods or services of one entity from those of others, providing brand recognition and loyalty.
– Copyrights: Legal protections for original works of authorship, such as books, music, and software, granting the creator exclusive rights to use and distribute their work.
– Goodwill: The value of a company’s brand reputation, customer relationships, and employee morale, often recognized during mergers and acquisitions.
– Trade secrets: Confidential business information that provides a competitive edge, such as formulas, practices, or processes that are not publicly known.