Why the Income Approach Is Favored When Valuing Intellectual Property (IP).

The article discusses the reasons why income approach is more preferable than cost and marketing approach in business intellectual property (IP) valuing. It says that the cost approach relies on production expenses to set the value, but cost does not equal IP value since value is the future income that will be generated. The market approach assumes that the stock market has all the relevant information on the IP value of the company, but most people using the approach do not know IP value.