IP Audits

What is an IP Audit?

IP Audit is an exercise carried out by a company or a research institute to ensure that the organization’s IP protection and management is in line with its business and other objectives. An IP Audit report generally has the following components:

IP Inventory – Listing the IP existing in a company along with legal status of each entry in the list;
IP Process verification – Identifying the loopholes or lacunae in the processes being followed in the company; and
Action points – Indicating and prioritizing the IP actions to be taken by the company.
IP Audits may be performed at regular intervals to uncover IP and manage it effectively. IP Audits may also be carried out at the time of entering into transactions such as licenses, joint ventures, research collaborations and so on.

When is an IP Audit carried out?

IP Audits may be performed at regular intervals to uncover IP and manage it effectively. Regular audits will help a company uncover IP and streamline the processes in the light of its changing business goals.

IP Audits may also be carried out at the time of entering into transactions such as licenses, joint ventures, research collaborations and so on. In such situations, IP Audits will help parties to enter into risk free relationships.

What is the product or deliverable from an IP Audit?

The product of an IP Audit will be a report, which includes the following elements:

Inventory of IP held by the company and uncovered during the audit, which is capable of being protected;
Review of IP policy and processes of the company in the light of its business goals; and
Recommended IP action points with appropriate prioritization.

How does an IP Audit benefit our company?

IP Audit will benefit your company in many ways. Some important benefits are:

It will help in uncovering IP capable of being protected by the company;
It will ensure that all actions with respect to protected IP and applied IP are taken;
It will help a company in re-defining the IP strategy based on business dynamics;
It will help in making IP investment or licensing decisions;
It will add value for managing IP portfolios effectively;
It will help in making decisions on IP maintenance and so on.

Who performs IP Audits in India?

There are very few companies that specialize in performing IP Audits in India. This service requires a combination of technology, management and legal expertise.

When must an IP Audit be done?

It is advisable to carry out an IP Audit atleast once every two (2) years. Having said that IP Audits may be performed at more or less frequent intervals based on the IP dynamics of a company.

What is IP Audit and how is it done?

The process of uncovering IP that has not been protected by a company but has tremendous business value is called IP Audit. Audit of IP is generally done by IP attorneys through technology review, document review and interviews.

What is the benefit of IP Audit?

IP Audit helps a company uncover valuable IP that can provide business and competitive advantage. It will help the company in taking protection decisions before possibilities of protection are lost.

How often must IP Audit be done?

IP Audit must be carried out at least once every year. Having said that, the periodicity of the exercise may vary based on technology and business dynamics of a company.