Intellectual Property Valuation in Nigeria: Challenges and Prospects

Abstract

The position of Intellectual Property in the continued market dominance in the face of business competition and enduring profitability of corporations cannot be over-emphasized. However, in most developing economies such as Nigeria, the contributions of Intellectual Property to the overall growth and development of business have not been fully articulated. Consequently, while intangible assets have gained prominence in developed economies, developing and under-developed economies pay little or no attention to various IP but rather, rely heavily on tangible assets as key measures of healthy businesses. Prior to the periods before the last five years, Intellectual Property valuation and indeed valuation of intangible assets have not gained any meaningful place in valuation discourse of prominent estate surveyors and valuers in Nigeria. Valuation discussions have always centered on tangible assets of real estate, plant and machinery, motor vehicles, office furniture and equipment and all such tangible assets in exclusion of Intellectual Property assets of goodwill, copy rights, patents, trademarks, trade secrets etc.

As a result of the foregoing, assessment of intellectual Property assets poses serious challenge to practitioners in Nigeria ranging from the concept and constituents of IP. In other words, issues and challenges of identifying what constitutes acceptable IP assets and types; what influences IP Valuations; the basic valuation approaches and methodologies have not been properly discussed.

This paper is aimed at summarily discussing the various issues and challenges of IP valuations and proffering solutions and making recommendations to aid Nigeria professionals towards better understanding of the IP concept and valuation methodologies bearing in mind that this is a relatively new introduction to valuation curriculum in Nigeria context.