Intellectual property can be functional in and of itself. When IP has standalone functionality it can perform tasks such as process transactions or be played and / or aired. Other types of standalone functionality may also exist.
If the intellectual property has standalone functionality the revenue will be recognized at a point in time, except in limited situations. If the license is expected to change substantively from the actions of the licensor, and the customer is either contractually bound or it is only practical for the customer to use the latest version of the software, then functional intellectual property will be recognized over time.
Other forms of IP have limited, or no, standalone functionality and are more symbolic in nature; such as a logo or tradename.
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