Why Medical Domains? The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage. "Warren Buffett" We believe that domains are unique Intangible Assets and are a one-of-a kind competitive advantage that can last forever. An asset that is not physical in nature that creates returns from year to year. Corporate intellectual property (items such as patents, trademarks, copyrights, business methodologies), goodwill and brand recognition are all common Intangible Assets in today's marketplace. An Intangible Asset can be classified as either: - Indefinite - Definite A company brand name is considered to be an indefinite asset, as it stays with the company as long as the company continues operations. However, if a company enters a legal agreement to operate under another company's patent, with no plans of extending the agreement, it would have a limited life and would be classified as a definite asset. The International Accounting Standards Board (IASB) offers some guidance (IAS 38) as to how Intangible Assets should be accounted for in financial statements. Wordings are similar to IAS 9. In general: - Legal intangibles that are developed internally are not recognized. - Legal intangibles that are purchased from third-parties are recognized. Under US GAAP, intangible assets are classified into: - Purchased vs. internally created intangibles - Limited-life vs. Indefinite-life intangibles. It's not surprising that the IRS understands the value of intangible assets; it realizes that such assets can be the key to a company's ability to generate income. And, of course, it wants to make sure it taxes that income, particularly if the assets are transferred either outside the U.S. or to another taxpayer. Domain assets are not just Internet identifiers, they are business builders. A strong domain asset helps direct customers to your website and maybe the difference between a potential customer visiting your site or investigating another site or product. Any questions or comments please feel free to contact us at our Headquarters. Let’s talk about OrthopedicFellowships.com


Nick Sudnykovych