Intangible resources may be classified as ‘assets’
or ‘skills’. Assets, which are obviously things
which one owns, include the intellectual property
rights of: patents, trademarks, copyright and
registered designs; as well as contracts, trade
secrets and data bases. The intangible resource
of reputation may also be classified as an asset
due to its characteristic of ‘belongingness’, and
whilst it may be defendable to attack with respect
to defamation and libel, it cannot be said to have
the property rights of, say a trademark, which
can be bought and sold. Skills, or competencies,
include the know-how of employees (as well
as suppliers and advisers), and the collective
aptitudes which add up to organizational culture.
When a company is taken over the acquirer can
be confident that he has acquired the acquiree’s
intangible resources such as patents, but he
cannot be certain that he will retain the intangible