Investopedia — Economics

Understanding Intangible Assets: Patents, Goodwill & More

Intangible assets are non‑physical resources such as patents, goodwill, brand names, and other intellectual property that drive long‑term competitive advantage. They fall into indefinite categories—like a brand that endures indefinitely—and definite categories—such as a patent with a set expiration. Valuing these assets is complex, relying on market, income, or cost approaches, and they often appear on balance sheets only when a clear value and lifespan can be identified. Misuse of intellectual property can trigger infringement litigation, underscoring their legal and financial significance.