IP audits can be hugely useful in establishing what IP is owned by a business and opportunities for business asset protection. For example:
Identify potential gaps in IP protection
Some businesses may be completely unaware that they are sitting on valuable and often unexploited IP which could lead to enormous economic potential and opportunities once discovered. For example, an IP audit could help you to identify opportunities to license your IP to third parties. If a business doesn’t know what IP it has or how to leverage it, it will be at a significant commercial disadvantage compared to its competitors.
Identifying cost savings
The maintenance of registered IP rights often comes at a cost through maintenance fees. Carrying out an IP audit will assist with identifying the registered IP which are unused, under-utilized or otherwise no longer valued.
IP audits can also help to foresee and avoid costly IP disputes in circumstances where they expose potential infringement of third-party rights.
Identifying the risks
IP audits can reveal certain risks from a legal perspective, such as:
- Identifying contractual risks (e.g. restrictions set out in license agreements and contracts that do not capture IP ownership as intended/required)
- Revealing IP assets which are susceptible to being extinguished. For instance, registered trademarks may be cancelled for non-use and use may be resumed in an effort to preserve the registration.
- Reviewing operational activities to ensure the business is compliant the contracts with third parties and the use of third party IP to avoid infringement or breach of contract.
