The Basic Steps For Conducting an IP Audit

Nearly all companies have some sort of intellectual property that is essential to their success, whether these are patents, trademarks or copyrights. There are also instances where a company acquires the IP assets of another company and in such cases, an IP audit is necessary. This assures that your company keeps its eye on these valuable assets, maintains the necessary paperwork, and can make some profit off them if possible. But if you've never done this before, where do you start? How does one begin with an IP audit? Here are the basic steps you need to undertake.

First and foremost, you'll need a checklist, identifying all the IP your company has. Make an initial list, just to make sure you have a list of all assets. Do this is as soon as you can, as intellectual property rights usually have some sort of time limit. If it's just too much work, consider getting outside help, who know what to look for and what to do. Create this initial list, going through all the paperwork you have on hand. You can also check with the necessary government offices and associations. Later on, you can expand this list to include other details, such as the dates they were registered, the dates their corresponding fees need to be paid and when they expire. This will help you determine your time line for whatever next steps and actions need to be taken.

Next, you'll have to identify which ones of your IP you aren't using, and you can let go or make money through licensing. This ensures that you won't be wasting valuable time and money with upkeep, and that you can make the best use of your IP. For example, if you own the rights to a song, you can make it available for use in TV and movies. Or if you own the patent to a process, you can shop it around and see if any other company can use it for their purposes.

Lastly, it's time to take action. Once you've identified your assets, and determined which you can keep and which should go, you'll have to plan carefully to take the best course of action for your company. You'll have to set up some sort of management procedures, or assign someone to manage your intellectual property for you and your company, since your time is probably better spent on working on your business.

Managing the Unmanageable for Law Office/Firms Management   Intellectual Property Monetization Is More of a Moral Issue   

Getting Your IP Audit Off the Ground

An IP Audit is necessary for any type of company that has any intellectual property assets. Intellectual property refers to those intangible assets which are creations of the mind, such as trademarks, copyrights, and musical or artistic works. When a company acquires these assets, or a set of assets from another company, it is important that they create an audit to assess all their IP Assets and be able to account for them. More importantly, you need an IP audit in order to manage all your IP assets - so you can find out which of your IP assets aren't being used properly, which affects your business and also how you can use these assets to improve your company. So, to begin and get your IP audit off the ground, let's look at the basic steps needed for your own IP Audit.

Identification

First, you must identify all the IP assets to be audited. Make a list of what you have. Companies like pharmaceuticals, health companies, music companies, food companies (as recipes can be a type of IP) and tech companies have a lot of IP assets, so be very thorough. Search the records for any missing assets you haven't accounted for. Identifying them will help you determine who exactly owns them, what is their status (lapsed or not) and what steps you need to take to ensure they remain in your company's name.

Aside from actual, listed IP assets, there are other types of IP that you own that you may not realize or think of as IP. The company brand, logo, relationships, certifications, regulatory approvals, mailing lists, and your PR, advertising and marketing strategies are such types of IP.

Rating

Next, after' you've made a comprehensive list of what you own, you'll need to give each an importance rating and a value. The importance rating would depend on what you're company's priorities are. However, a good set of criteria would be: a) whether they are part of your company's core activities, the IP asset's life expectancy, and how exclusive this IP is to your company.

Values in actual dollar amounts may be more difficult to determine. However, a good way would be to determine a set time (2, 5 or 10 years, depending on your business plan) and try to determine how much money that IP will generate for your company and how much would it cost to replace such IP asset.

When you make such determinations and assessments, you'll be able to make better decisions for your company. For example, if someone was infringing on your IP, what steps should you take to stop it (and if it's worth it at all.) You'll be able to put your resources to better use, and generate maximum profit for your company.

Managing the Unmanageable for Law Office/Firms Management   Intellectual Property Monetization Is More of a Moral Issue