Intangible Property
Definition:
Intangible property refers to assets that have value but do not have a physical form. These include intellectual property rights, trademarks, copyrights, patents, goodwill, and digital assets. Unlike tangible property, intangible property represents legal or financial rights rather than physical objects.
Intangible Property Information
Intangible property plays a vital role in modern business and finance, often representing a significant portion of a company’s total value. It includes both **intellectual property** (such as patents and copyrights) and **non-intellectual assets** like goodwill, brand reputation, and software. Because it lacks a physical presence, valuation of intangible property can be complex, relying on projected income, market comparables, or cost approaches. Protecting these assets often requires registration, licensing, or contractual agreements. In many industries, intangible property is as valuable as physical assets, driving innovation and market competitiveness.
Florida Legal Definition
Under **Florida Statutes Section 199.023(1)**, intangible personal property includes all personal property that is not in physical form, such as money on deposit, stocks, bonds, and other evidences of debt. Florida previously imposed an **Intangible Personal Property Tax**, which was repealed in 2007, but the definition still applies in various legal contexts. Florida law recognizes both tangible and intangible property rights, and such assets may be transferred, licensed, or inherited like physical property. Courts often address intangible property in disputes involving estates, business valuation, and intellectual property rights.
How It’s Used in Practice
In practice, intangible property is used in corporate accounting, mergers, licensing agreements, and estate planning. Businesses frequently license trademarks or software to generate revenue. In Florida, intangible assets may appear in probate cases, divorce settlements, and tax assessments. Financial institutions also consider intangible property when evaluating a company’s net worth. Companies often protect these assets through intellectual property registrations and contractual safeguards.
Key Takeaways
- Intangible property consists of valuable non-physical assets such as patents, trademarks, and goodwill.
- It represents legal or financial rights rather than physical objects.
- Florida Statutes Section 199.023(1) defines intangible personal property for legal purposes.
- Commonly used in accounting, licensing, estate planning, and intellectual property law.
- Proper valuation and protection are essential to maintain its legal and financial worth.
Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney–client relationship with Barnes Walker, Goethe, Perron, Shea & Johnson, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.
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