Trademarks are source identifiers marketers and brand gurus use to differentiate their goods or services from competitors. But how much is a trademark worth?
Well, Bed Bath & Beyond sold its trademark portfolio to Overstock.com for $21.5 million. Overstock has rebranded its entire site to the new branding. If you go to overstock.com now, it redirects to bedbathandbeyond.com.
This example illustrates how a trademark portfolio is a valuable asset for any business and how a trademark portfolio can have an actual dollar amount of value for a business.
Here, Overstock execs concluded that they had a good model, but a subpar trademark in "Overstock." It's a word that implies bargains or liquidation sales, which puts a damper on the brand's ability to expand beyond surplus inventory. Meanwhile, Bed Bath & Beyond didn't have a winning business model, but a great name - one that suggests the types of products it sells and already has built-up fanbase and terrific brand awareness. Overstock's CEO said, "We thought we had a good operating model but a bad name... Bed Bath & Beyond had a great name but a bad operating model..."
This transaction is one of many reasons to develop a strong trademark portfolio and invest in your company by registering and protecting your trademarks because trademarks can be very valuable.