- IP Audit is the process of assessing and evaluating the IP Assets of an organization, usually by IP Professionals.
- It is a systematic review of the IP assets owned, used or acquired by a business.
- It is the act of identifying, monitoring and valuing the IP assets so as to enable an organization to exploit them to the fullest.
- The purpose of IP Audit for an organization is to uncover under-utilized IP assets, identify threats and devise informed IP strategies.
- IP Audit helps in responding appropriately in the event where an organization’s IP is infringed.
- IP Audit assists use of IP effectively and appropriately.
- IP Audit identifies an organization’s strengths and weaknesses thereby enabling the realization of full value of the IP assets.
- Ideally, professional IP auditors should conduct an IP Audit. Nevertheless, an internal team within the Organization may also conduct a preliminary IP audit.
- Knowledge of an Organization’s intellectual property and its value will assist in deciding which type of IP rights to acquire and maintain, and how best to manage the IP assets of the organization.
- IP Audit results play a major role in making decisions during Mergers and acquisitions.
- IP Audit can increase revenue by identifying IP that can be licensed to a third party.
- An IP audit will assist the organization in determining the value of its own IP in order to obtain maximum benefit from license agreements. The revenue resulting from such licenses has the potential of increasing the market value of the Organization.
- A well-structured IP portfolio may, in certain circumstances, also be used as collateral. In such cases, lenders will use IP assets to determine the credit worthiness of the Organization.
- Knowing the value of IP assets will assist an Organization in taking decisions against infringement and in what way this may be done on a case-by-case basis.
- A well-managed IP register would help you identify obsolete IP assets thereby eliminating IP asset maintenance costs.
- An IP audit is a relatively simple exercise, but it has a meaningful role in avoiding various circumstances, such as violation of others’ rights, protecting one’s IP/IP rights, minimizing the risk of third party IP violation, clarifying IP ownership issues, etc.
- It also serves as a guiding tool for maintenance, management and safeguarding of IP rights throughout the life cycle of IP.
- As Organizations understand the value of their IP Assets, the importance of IP is bound to grow, and thus the need for an IP audit.
- Conducting periodic IP audits is recommended as that helps the enterprise to keep its IP portfolio up to date.
