BY ARUN KUMAR ‘aru’
Property considered as one of the
important asset for any individual or organization. Few decades back, the value
of tangible assets was more than the intangible assets. The reason behind this
low value of intangible assets was ignorance or lack of proper tools for their
identification. But by the change of century, the ratio of the value between
tangible and intangible assets had been reversed. So it becomes important for
any organization to keep track the magnitude, quality and applications of the
intangible assets of the organization. This can be done only with the help of
Intellectual Property Audit.
What is IP Audit?
IP Audit is a systematic
evaluation of IP Assets available in the organization or it is an examination
of inventory of information related to any particular technology which may be
owned, used or acquired by the organization. IP Audit helps to assess and
manage risk, remedy problems and implement best practices in IP Asset Management.
Once the audit is completed, then a register should be kept of your IP
rights.
Why IP Audit?
·
Helps in gathering information useful in
understanding the updates of concerned business and market;
·
Powerful tool for preparing strategies to manage
and maximize return on its intellectual property investment;
·
Helps to assess and manage risks so as to be
able to implement best practices in solving problems;
·
Helps in designing R & D and Marketing
strategies to minimize the exposure from defects discovered in the IP Audit.
When to Commence IP Audit?
An IP Audit should be commenced:
·
To know the status of the IP Portfolio;
·
Before a significant acquisition or merger of a
technology or product;
·
To ensure that the intellectual property is
properly protected and enhances the acquiring organization’s existing
intellectual property interests;
·
At critical junctures in a company’s life cycle
to ensure the continuing adequacy of such procedures and to detect defects
therein;
·
To check the risk of infringement with the development
of a major new product;
·
In response to a change or new development in
the law;
·
When an organization sets up an intellectual
property license or licensing program;
·
In connection with new programs or policies of
the market.
Where one should search for IP Audit?
IP Audit includes following
issues to assess:
·
Issued Patents
·
Patentable Ideas / Information / Technologies
·
Company’s owned technologies
·
Direct or Indirect Agreements
·
Direct or Indirect Licensing
·
Technologies Imported or Exported
·
Infringed Technology
·
Trade Secrets
·
Industrial Designs
·
Know-How Manuals
·
Government Contracts
·
Published Papers / Journals
·
Business Method Data
Uncovering and understanding of these
assets will often provide a company with extra revenue streams other than those
involving licenses and royalty payments. These revenues streams can come from
Joint Ventures, Research and Development sharing, and distribution agreements
in those jurisdictions that may have been inaccessible up until now.
Conclusion
Finally, we can conclude that Intellectual Property (IP) can
be the best source of building revenue and to get competitive edge over competitors for various organizations but the
need is to identify and utilize that IP in your organization and this can be
possible only with regular Intellectual Property (IP) auditing. In the words of
an intellect - “if you don’t measure it, you can’t manage it”.
