For a technology company, intellectual property can be the cornerstone of the company’s value. Intellectual Property may need to be valued for reasons such as a corporate restructuring, strategic planning, licensing, and other reasons. The valuation of Intellectual Property is similar in nature to the valuation of intangible assets in that the valuation relies on one of the three basic approaches to valuation: the cost, income, and market approaches. Given the nature of intellectual property, it is often valued using the income or royalty-relief methods. The income approach involves projecting the income that will be attributable to the intellectual property over its life. These projections take into account the nature of the intellectual property and its ability to generate revenues, the likelihood of obsolescence, competition, alternative technologies, and the like. It also includes examining the tax benefis of the asset, as well as adjustments for any contributory assets. The royalty-relief method projects the potential revenues associated with the intellectual property and applies a royalty rate or licensing fee to the revenues to estimate the costs savings consistent with owning the technology. These savings are adjusted for taxes and present value.