As intellectual property valuation experts, we have been asked to analyze the impact of negative statements about a business that were classified as either defamation or disparagement. Although the definitions differ, the financial and economic impact can be substantial and tends to have the greatest effect on the value of a company’s brand and reputation.
‘Defamation’ is defined as “the act of making untrue statements about another that damages his/her reputation. If the defamatory statement is printed or broadcast over the media it is libel and, if only oral, it is slander” (www.dictionary.law.com). ‘Disparage’ is defined as “to speak of or treat slightingly; to bring reproach or discredit upon, lower the estimation of” (www.dictionary.reference.com).
Negative statements about a company create a negative association with company and product brands. When a company receives negative publicity, customers and business partners are likely to seek alternatives, resulting in a lasting impact on sales and profits. The impact on brand reputation and brand recognition can last for a long time.
In the past, negative statements occurred in traditional media and their impact faded as access to old news faded. On the Internet and in social media, negative comments can be linked to brands in web and Google searches for years, creating a lasting negative association. Based on market research, brand contribution analysis, and financial performance reviews, we are able to provide well-supported opinions in matters involving defamation damages claims.
Nevium professionals have provided testimony supporting defamation damages claims following disparaging and defamatory statements. We have also worked with brand owners to develop branding strategies and to measure the impact of re-branding strategies.
In cases involving brand defamation damages Nevium has:
- Employed event studies to identify the impact of brand defamation
- Researched the impact of defamation and negative publicity on market value and brand value
- Applied website analytics to measure the exposure and impact of events, statements
- Analyzed the impact of negative endorsements; events where celebrities make negatives statements about branded products
- Calculated lost profit damages resulting from defamation
- Rebutted lost profit calculations related to defamation claims