What are intangible assets

What are intangible assets?

Intangible Assets: Legal Definition and Examples

Intangible assets are non-physical assets whose value lies in ideas, rights, or reputation. According to international accounting standards (IAS 38), an intangible asset is “an identifiable non-monetary asset without physical substance.”

In the field of intellectual and industrial property, intangible assets include rights protected by law—such as patents, trademarks, industrial designs, copyrights, trade secrets, and software.

The World Intellectual Property Organization (WIPO) considers intellectual property assets part of a company's "intangible property": they are legally protected, transferable or licensable, and often generate revenue. For example, patents or trademarks like Apple or Microsoft are high-value intangible assets. So are industrial designs (e.g., the silhouette of a bottle) or copyright-protected creations like software or music.

In Spain, the Patent Office defines intellectual property rights as “intangible assets” that, although they cannot be touched, can be traded (sold, licensed, mortgaged).

International Frameworks

At the global level, intellectual property is recognized as a set of intangible rights protected by international treaties.

The TRIPS Agreement (WTO) establishes minimum protection standards for various categories of IP: copyrights, trademarks, geographical indications, industrial designs, patents, layout-designs of integrated circuits, and trade secrets. While TRIPS does not explicitly define "intangible asset," it treats all IP categories as rights with commercial and legal value.

WIPO emphasizes that intangible assets are the “hidden wealth” of knowledge-based economies. They drive innovation, productivity, and economic growth. In fact, WIPO notes that these assets represent over 30% of total production value in advanced economies.

While not all intangible assets are formal IP (e.g., internal know-how), many derive their value from exclusive rights like patents, trademarks, or copyrights.

National Regulations

Mexico

The Federal Law on the Protection of Industrial Property (2020) regulates patents, trademarks, utility models, industrial designs, and trade secrets.
Trade secrets are defined as "any industrial or commercial information... kept confidential and that represents a competitive advantage."
The Federal Copyright Law protects literary, artistic, and scientific works, including software. While the term "intangible asset" is not always explicitly used, these laws recognize that such rights are incorporeal goods with economic value.

Spain

Spain's General Accounting Plan defines intangible fixed assets as “non-monetary assets without physical substance, with measurable economic value.”
Specific laws regulate industrial property rights:

  • Patents (Law 24/2015)

  • Trademarks (Law 17/2001)

  • Industrial Designs (Law 20/2003)

  • Trade Secrets (Law 1/2019)

The Spanish Patent and Trademark Office clearly states that these rights are "intangible assets" that can be bought, sold, or licensed.
The Copyright Law (Law 1/2002) protects works of art, literature, science, and software as intangible property of the author.

Argentina

Argentina’s main IP laws include:

  • Patents (Law 24.481)

  • Trademarks (Law 22.362)

  • Industrial Designs (Law 27.444)

  • Copyrights (Law 11.723)

Although the term "intangible asset" isn't always used, these laws recognize IP rights as incorporeal, registrable, and transferable property.
In accounting, intangible assets are treated in accordance with international standards (identifiability, useful life, and economic value).

Colombia

Decree 1074/2015 governs the registration of industrial property rights.
Law 1676/2013 explicitly allows trademarks and patents to be used as collateral for loans, thus recognizing them as movable intangible property.
The Colombian Superintendence of Industry and Commerce also treats IP as legally protected intangible assets.

Differences Between Industrial and Intellectual Property

  • Industrial Property includes patents, utility models, industrial designs, trademarks, trade names, and trade secrets. These are typically obtained via formal registration or, in the case of trade secrets, through confidentiality measures.

  • Intellectual Property (in a narrower sense) refers to copyrights and related rights: artistic, literary, scientific works, software, music, films, databases, etc. These rights usually arise automatically upon creation and don’t require registration (except for legal proof or licensing).

Despite their legal differences, both categories constitute intangible assets and confer exclusive economic rights to their holders.

Economic and Legal Value

Intangible assets have growing economic value. According to WIPO, they account for over 30% of the total production value in modern economies.

For businesses, these assets can generate sustainable revenue through licensing, royalties, sales, or exclusive commercial use. Their value is based on the exclusivity they confer: the right holder can prevent third parties from using or imitating them.

For instance:

  • A patent gives monopoly rights over an invention.

  • A strong trademark allows premium pricing and brand loyalty.

  • Copyright protects and monetizes creative works.

These assets are legally enforceable. Infringements may lead to court actions, financial compensation, or licensing agreements.

Additionally, intangible assets appear on company balance sheets and can be used as financial guarantees, such as in Colombia’s legal system.

Key Takeaways

  • Intangible assets are non-physical property such as patents, trademarks, copyrights, software, or trade secrets, with legal protection and economic value.

  • WIPO and WTO (TRIPS) treat these rights as key components of intellectual property frameworks, though the term “intangible asset” is mainly used in accounting and business contexts.

  • National laws across Mexico, Spain, Argentina, and Colombia recognize these rights as transferable, enforceable, and economically valuable.

  • Industrial property covers inventions, brands, and designs; intellectual property focuses on creative works like literature and software.

  • These assets are strategic economic tools, driving innovation, creating market advantages, and offering legal exclusivity in competitive markets.

Sources: WIPO, WTO-TRIPS, national laws (codes and decrees) and accounting regulations.