Contemporary appraisal of property has deep gnoseological roots. It is quite apparent that an appraiser should conduct the property pricing analysis from three points of view.
First, one should study the history of the appraisal subject-matter and try to determine the expenditures involved in that process. The cost-based approach is founded on the above-mentioned components. The strategies used within the application of this method can hardly be applicable to appraisal of intellectual activity results and means of individualization (IP), since the actual expenditures reflect not more than one tenth part of the real cost of an innovative product.
Second, an appraiser should try to define the terms and conditions on which the transfer of proprietary rights and title in similar IP (with regard to purpose and relative utility) for the current period would be possible. This is the base for the market approach. The method of sales comparison is one of the most spread techniques characteristic of such approach. Though the market approach is rarely used in IP appraisal either. The reason for is the inaccessibility of information on IP deals taking place in the market as well as on actual terms and conditions of such deals.
Third, it is necessary to evaluate all potential benefits from possessing the property being appraised. This task is accomplished in the framework of the income-based approach where one of the most important principles of appraisal, expectations method, is the basis. According to this principle the cost of any property is defined by its size, quality and period of receiving future profits expected by the owner.
This approach is fundamental in IP appraisal. Methodology of the income-based approach is divided into two main groups. The first one comprises the procedures based on estimation of the real economic effect obtained through IP use. The second one includes the methods based on artificial marking out of profit from IP use.
The real economic effect born by IP object generally can originate from three factors: advantage in price, saving on expenditures, and royalties from licensing of IP object.
In purpose of artificial marking out of the profit from IP use two main strategies are utilized, namely the method of royalty “separation» and the method of determining the licensor’s profit share in the profit gained by the licensee.