IP Audit

Your intellectual property is your most valuable business asset. It’s core to your future revenues, and you must keep track of it, especially if you are trying to license it or raise capital.

That’s why you need an IP audit. It creates an inventory of your IP assets and includes verifying the types of IP, registration status, where and how it’s being used, any outstanding issues, such as upcoming fee payments or pending litigation, and what legal or other issues must be fixed.

An IP audit is even more important for non-registered IP, such as trade secrets and professional know-how, as it is the only way to package and track your IP for licensing or sales.

If intellectual property is your only asset, it’s even more critical that you complete the IP due diligence process and prepare an IP audit report. When potential licensees, investors or an M&A partner is interested, you’re ready to give them the information they need to assess the risk, value, and ROI of the transaction.

Get this Free Special Report – The IP Audit

The Benefits of an IP Audit

A recent survey of small and mid-size businesses in the UK found that over 80% benefited and took action with their IP as a result of the IP Audit:

85% increased their awareness of their IP value
Over 30% identified new business opportunities
43% identified new licensing opportunities
Almost 20% reported acquiring new customers
About a third reported securing new equity and grant funding
70% reported refocusing their business strategy to prioritize their IP
Over 87% would recommend the IP audit to other businesses

Critical Steps in the IP Audit & Due Diligence Process

The first step in the audit process is to find the readily identifiable IP. Assets falling into this category will include any registered trademarks, copyrights, designs, or patents owned by the business, any licenses to third parties, and any licenses from third parties, including cross-licenses. Also included in this category are things such as in-house work manuals, databases, recipes, franchise agreements, publications, and product/process know-how.

After identifying all the IP assets, the second step is to check the legal registration status and what needs to be registered. Non-registered IPs, such as trade secrets, are reviewed to ensure actions are in place to protect confidentiality.

The third step is evaluating how you are using your IP., looking at factors such as whether they are integral to its products, services, or technology, the IP life expectancy, and its impact on your company’s business and profitability.