Céline Lagrost, Donald Martin, Cyrille Dubois and Serge Quazzotti
This paper aims to assess how to select an appropriate intellectual property valuation method according to the valuation situation and context.
Abstract
Purpose
This paper aims to assess how to select an appropriate intellectual property valuation method according to the valuation situation and context.
Design/methodology/approach
The article describes the difference between the quantitative and qualitative methods and principles. It reviews the principal approaches and methods used to evaluate an intellectual property asset and proposes a framework to help the evaluators to select an appropriate valuation method. The paper initiates a discussion on the parameters and requirements that influence the choice of an IP valuation method in order to reach the expected valuation result.
Findings
This paper provides useful guidelines for any evaluator who would be responsible for executing an IP valuation and who would be faced with the difficult task of choosing an appropriate IP valuation method. It is the intention of this paper to develop a synthesised and integrated procedure for the selection of an IP valuation method.
Research limitations/implications
The limitation of this paper is that not all of the existing methods were described and taken into account in the final proposed procedure. The authors made a series of assumptions and a selection of the methods that may not be entirely shared by other researchers and practitioners. The authors are conscious that this constitutes a first proposal in the selection process of the most relevant IP valuation method. Further discussions and developments would be carried on in the future to enhance the proposed procedure.
Originality/value
This paper proposes a framework to orientate the choice of an appropriate IP valuation method according to the context and situation in which the valuation is to be implemented.
Details
Keywords
Abhishek Vaish, Aditya Prabhakar, Himanshu Mishra, Nupur Dayal, Shishir Kumar Singh, Utkarsh Goel and Natalie Coull
The aim of this research is to demonstrate the importance of placing a valuation on information assets and to propose a new valuation technique that complements existing valuation…
Abstract
Purpose
The aim of this research is to demonstrate the importance of placing a valuation on information assets and to propose a new valuation technique that complements existing valuation methods and provides improved results. It seeks to answer the following research question: what are the attributes of information relevant to value and how can they be used to produce a valuation of the information?
Design/methodology/approach
Using a test bed, hosted on the college's intranet for 12 days, three important variables were calculated: accessibility, lifespan and outcome across five files. Calculating these three variables is essential to conducting an accurate valuation of the information asset.
Findings
The research demonstrates the relationships between these variable (accessibility, lifespan and outcome) as well as showing that they have a critical impact on the value of the information asset. The findings provide a strong rationale for the practitioner or researcher to adopt the model in real time situations. The correlation coefficients of our attributes are: 0.9996 for accessibility and lifespan; 0.9755 for accessibility and outcome and 0.9754 for lifespan and outcome.
Research limitations/implications
Due to the sensitive nature of some of the information held by the organization, the observations were somewhat limited. However, the model could be replicated with a collaborative arrangement between the organization and academia.
Practical implications
This paper aims to provide a new model for risk management that can be used effectively to conduct a valuation of information assets. The approach will help the organization to better quantify their information assets and will prove to be a useful tool for the next generation of Information security managers.
Originality/value
This paper determines the valuation of information assets based on three variables; accessibility, lifespan and outcome. These variables have been identified from the extensive literature review in the area of intangible assets.