Relief from Royalty Approach : Value of Proprietary vs. Value of Licensee's Rights to Intangible Assets

In the Czech Republic, one of the most used techniques for the valuation of intangible assets for non-transaction purposes is the Relief from Royalty approach, in which the value of a property is expressed as a discounted royalty income saved due to the ownership of that property. This paper is a first step towards creating an analytical framework for the accurate using of the Relief from Royalty method in the Czech valuation practice. Being the first part of the extensive further research in this field, this paper aims at describing the problems of the disproportion between the value of proprietary and licensee's rights to intangible assets with regard to various valuation purposes. The paper also suggests some solutions how to reflect this disproportion in the Relief from Royalty approach