• Provides value indications by studying comparable market transactions of assets similar to the asset being analyzed.

• Similarity in terms of utility--technological specificity and property--would have to be assessed as well as the notion of perception of the IP asset by the market.

• In addition, to be sure that the market transactions are comparable, sufficient information is needed concerning pricing, scope and any terms and conditions related to the exchange or sale of the IP.

• The major disadvantage of this method is the difficulty to find comparables if the asset is novel.

• Making a comparison of the income produced with and without the IP asset.

• Often used for brand valuation--comparing the income difference between a branded product and a similar but unbranded product.

• Utilizes sales of comparables in order to derive a market multiple, which is then used to value the IP asset.