In business valuation analysis, a License Agreement is one of the intangible assets possessed by entities granted such authorisation to undertake a certain kind of business. An Intellectual Property License Agreement is a private right granted to third-party licensees to exploit the intellectual property of the developer or licensor. The ownership or right to use the license commands significant value to the user. An Intellectual Property License belongs to the category of intangible assets sometimes referred to as “contract intangible assets” which provides value to the user as a result of a written, legally enforceable contractual arrangement and gives the user the right to conduct all or part of the subject business. Business valuators estimate the fair market value of intellectual property license by applying techniques under the market, asset and income valuation methods. An intellectual property license qualifies as an intangible asset because it is identifiable, separable and the potential cash flows associated can be accurately measured.