A Guide To IP Audits

In a previous article we discussed the importance of carrying out IP audits. In this article we outline the steps that need to be carried out in order to complete an audit. It is now well-established by business valuators that the intellectual property constitutes, on average, 75% of the saleable asset value of twenty-first century corporations. So IP auditing is an important management tool.

Identification of Intellectual Property ("IP")

The first objective is to locate relevant IP, including inventions, trademarks, material subject to copyright, designs, know-how and confidential information. Licenses and any other royalty arrangements granted to or by the company should be included. In most cases, the competencies and time required for this step may best be addressed by the engagement of outside counsel and valuation experts.