An audit not only preserves and enhances your company’s IP; it also allows any issues to rise to the fore that might represent a risk down the line. An IP audit is an opportunity to correct defects, identify risks that you might be infringing on another’s intellectual property, and allows you to implement an organizational framework and best practices for tracking each of your company’s IP assets.
Generally, an IP audit is performed by a seasoned team of legal professionals, who have experience identifying the issues, risks, and opportunities your company may face. Hiring a firm to work in-depth with your IP audit will also set you up for success with that same firm should litigation arise down the line.
Benefits of Conducting an IP Audit
There are a variety of benefits to auditing your company’s IP, which helps you obtain a complete picture of what’s available for your business. The audit will help your firm identify what is already owned, so it can make decisions about whether further protection is needed for each individual asset. The audit would review all of your company’s existing agreements, including licensing agreements, assignments, employment and independent contractor contracts, joint ventures, and tech transfers. The audit can also identify new opportunities from which companies can profit, identifying strategies for either patenting, copyrighting or trademarking certain services or creative assets. Not only can these strategies allow you to exploit your company’s offerings in foreign markets, it will also increase the likelihood that any usage of these items would allow you to seek damages for their infringement.
What is Identified During the Audit?
Each audit is different, but there are a number of steps most IP lawyers will take to perform your audit, and certain documents or information will prove key to their efforts. These requests will undoubtedly lead to the discovery of key opportunities and risks. Some of these include:
Product and process features that have not been patented yet, but could be
Defects in existing patents
Missing and deficient employee agreements that risk trade secrets
Trademarks central to the company’s identity
Product configurations requiring protection
Patent and trademark royalty payment terms that were being ignored and stand to be recouped
Missing notices of patent, trademark, and copyright that were not allowing the company to enforce their IP rights and seek damages
Opportunities for licensing in new markets and channels
IP audits almost always result in quantifiable benefits for companies, so it’s highly recommended you consider launching your own today.