ASSESSMENT OF INTELLECTUAL PROPERTY VALUATION PRACTICE IN LAGOS STATE, NIGERIA.

Abstract

Intellectual property valuation is a new phenomenon recently introduced in the corporate business circle in Nigeria and there is need to access these new developments. The study assessed intellectual property (IP) valuation practice in Lagos State. Consideration was given to identified types of intellectual properties that valuers value in Lagos State; the methods of valuation mostly employed in the valuation of intellectual property and the appropriateness of the valuation methods employed. The sampling frame for the study was three hundred and seventy one (371) Estate Surveying and Valuations Firms. Out of the 371 Estate Surveying and Valuation firms, 85 of the firms claimed to have engaged in IP valuation through pilot survey. This number (85) was taken as the new sample frame and therefore formed the sample size. Data for the study was analysed using frequency distribution table, weighted mean score, Cronbach reliability test, ANOVA and factor analysis. Analysis of the method of valuation used for valuing intellectual property showed that valuers are mostly aware and frequently use the traditional methods which are cost method, Market method, Income method and Profit/Account method of valuation over the modern methods of valuing intellectual properties (Ventures Capital, Artificial neural network, Relief from royalty, Hedonic Pricing methods e.t.c.). The study also found that factors such as economic, awareness, motivation, political, management and locational are factors influencing intellectual property valuation in the study area. The study recommended that Nigerian Institution of Estate Surveyor and Valuers should encourage the practice of Intellectual property valuation as part of their service delivery to customers and professionals in Estate Surveying firms should not base their methods of valuing intellectual property on the traditional method only, rather on a good appraisal of the advanced method of valuation. The study concluded that traditional method of valuations is the most used method of valuation for valuing IPs, also the result from the factor analysis revealed that the factors affecting the choice of valuation methods used are of some Economic, Motivation, awareness, political, management and locational factors.